this bill introduced by Rep. Edolphus “Ed” Towns (NY-10) is a great idea…however, this proposed bill completely eludes the Short Sale.  Not even mentioned?

Odd that the “Short Sale” which is the “responsible” approach to todays housing problems…simply working with your mortgage company to sell a home for less than it’s worth…and do it successfully is becoming a fairly streamlined process accepted by all banks, would not be seen in Mr. Towns proposed bill.

Mr. Towns proposes that we “reward” the homeowner that chooses “foreclosure” -vs- Short Sale and reward them…but leave the responsible folks that list their home for sale, show the home and sell it with no gain in their pocket, out of the equation.

You’re thoughts?

Here’s the article from NAR:

Bill Seeks 1-Year Cap on Foreclosure Deficiencies

Previously, the max LTV accepted under the program was 125 percent, meaning those in need of the most help were essentially out of luck.

With this change, even the deepest underwater borrower will be able to refinance their mortgage to take advantage of today’s record low mortgage rates. Of course, there are some limitations.

- The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
- The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
- The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
- The current loan-to-value (LTV) ratio must be greater than 80%.
- The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.

Gov. Brown Approves "No Recourse" SB 458

We’ve been writing about this…why?

It’s amazing!

For many Californians, the fear of future recourse or bill collections after a short sale halted many prospective short sales from going through…well no more worries.

Learn more about this new law here… CCP 580E

Call Kris and Kim to list your home for sale…why you ask…because they know what we’re doing!

California SB 458 Passes

Yes…it’s true…Governor Brown signed into law SB 458 amending CCP 580E  .

That means if you’re a homeowner or investor of a Single Family Residence property or a 1 to 4 unit rental property and it’s not held in a corporation, LLC or other Joint venture…

You’re protected from debt collection after the successful closing of your short sale.

Fantastic News…

Call us today and get your home listed with Kris and Kim!

If you were hesitant to start a short sale…as of Friday, July 15, 2011… Governor Jerry Brown has all but removed every road block for the average homeowner in Los Angeles, California to proceed in full protection from any bank recourse.

In an effort to protect all of us from banks, California Governor, Jerry Brown eliminated banks, servicers or any secondary lien holders from pursuing judgements

The new law is a build on California Civil Code Procedure 580E that was added last year and came into effect January 1, 2011.  This revision protected home owners completing short sales from the first lien holders and also included investors…as in the past, investors were treated differently…unprotected.

Under SB 458, now all homeowners, including investors not holding proeprties under Corps, LLS. Limited partnerships, etc…are protected from future judgements for deficiencies.

Amazing time for Californians.

This is surprising.

1 year after Dodd-Frank bill was passed…we’re already seeing back lash.  The confusing and tedious disclosure required by the Federal Trade Commission for any parties offering Real Estate Short Sale guidance is going away.

It was confusing to say the least and difficult to interpret to anyone.  and I mean anyone…Kim and I have challanged National Association of Realtors offices in Washington DC with interpretation and no one in the DC, including attorneys can interpret the law.

So, we say “au revoir” to another government debacle.

Is Dodd-Frank next?

Here is the story as reported by Inman

The Federal Trade Commission says it will exempt real estate brokers and agents assisting clients in obtaining short sales from most provisions of new rules intended to protect consumers from foreclosure rescue scams.

Real estate brokers and agents complained that the “consumer specific” disclosure forms the FTC introduced as part of its Mortgage Assistance Relief Services (MARS) rule were confusing, because they addressed services provided by loan modification companies, not real estate agents.

“You may stop doing business with us at any time,” the FTC’s model language for one disclosure reads. “You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer you do not have to pay us. … Even if you accept this offer and use our service, your lender may not agree to change your loan.”

The FTC says it will exempt licensed brokers and agents assisting clients with short sales from the disclosure requirements, which took effect Dec. 29, and also from a ban on the collection of upfront fees, which was put in place Jan. 31. Short-sale brokers and agents will continue to be subject to MARS prohibitions against making misrepresentations to clients.

Just released…

We saw this coming and here it is…

Federal government is reducing Jumbo loan qualifiers to protect us from ourselves!

What do I mean?

We already showed that if we are givin the option to spend more money than we earn, then we will and the US economy will implode.

So, in an effort to limit this from happening again…the government is limiting us from buying these homes and will in turn limit the “buying pool” to those not able to qualify for a jumbo loan.

What will happen is home owners will be forced to reduce the price of their homes to reflect this new lowered limit…driving home prices down promptly.

This new cap takes affect October 1, 2011…however, it is already being implemented by banks as standard practice.

Assistance Program Available for Home owners in the State of California:

• Unemployment Mortgage Assistance or UMA
• Up to $18,000 per household total (average funding of $14,455.43), equaling the lesser
  of $3,000 per month or 100% of PITI and any escrowed homeowner’s association dues
  or assessments (and in all cases, subject to the HHF Program maximum benefit cap of
  $50,000 with respect to monies previously received under other HHF Programs, if any)
• Mortgage Reinstatement Assistance Program or MRAP
• Up to $15,000 per household (average funding of $14,047.92) for PITI and any escrowed
  homeowner’s association dues or assessments, arrearages (and in all cases, subject to the HHF
  Program maximum benefit cap of $50,000 with respect to monies previously received under
  other HHF Programs, if any)
• Principle Reduction Program or PRP
• Up to $50,000 per household (average funding of $31,449.58), less program monies
  previously received under other HHF Program
• Transition Assistance Program or TAP  (This is for homeowners that successfully complete a Short Sale)
• Up to $5,000 per household (average funding of $5,000) used for Relocation Assistance.

 

May 26, 1983

Memorial Day is a time to take stock of the present, reflect on the past, and renew our commitment to the future of America.

Today, as in the past, there are problems that must be solved and challenges that must be met. We can tackle them with our full strength and creativity only because we are free to work them out in our own way. We owe this freedom of choice and action to those men and women in uniform who have served this nation and its interests in time of need. In particular, we are forever indebted to those who have given their lives that we might be free.

I don’t have to tell you how fragile this precious gift of freedom is. Every time we hear, watch, or read the news, we are reminded that liberty is a rare commodity in this world.

This Memorial Day of 1983, we honor those brave Americans who died in the service of their country. I think an ancient scholar put it well when he wrote: “Let us now praise famous men . . . All these were honored in their generation, and were the glory of their times. Their bodies are buried in peace; but their name liveth for evermore.” As a tribute to their sacrifice, let us renew our resolve to remain strong enough to deter aggression, wise enough to preserve and protect our freedom, and thoughtful enough to promote lasting peace throughout the world.

Ronald Reagan