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Rebecca U. Cho, Staff Writer
Created: 05/13/2010 07:41:28 PM PDT

National foreclosure activity fell last month on an annual basis for the first time in four years, with the Inland Empire’s filings dropping by a quarter from March, according to data released Thursday by a firm that tracks foreclosures.
But the latest numbers most likely reflect a stronger crackdown on foreclosures nationwide rather than an improvement in homeowners’ abilities to pay their mortgages, industry observers said.

“It’s a sign of the times that there’s a huge response to minimize the number of foreclosures overall,” said Brad Kemp, director of regional research at Beacon Economics, a San Rafael-based think tank.

Foreclosure filings fell by 2percent in April from the same period a year before, according to RealtyTrac, which collected data from 2,200 counties nationwide. That was a 9percent drop from March.

In San Bernardino County, foreclosure filings fell 25.7percent in April from the month before to about 5,900 filings.

But government programs, such as the federal Home Affordable Foreclosure Alternatives Program, which went into effect in April, probably contributed to the decline, industry observers said. HAFA pays incentives for short-sale or deed-in-lieu of foreclosure agreements.

“There’s a lot of things happening that’s propping up the market and helping foreclosures to subside,” said Daren Blomquist, RealtyTrac’s marketing communications manager. “To me, this is a fragile trend we’re seeing. It can be upset if some of those government props go away or if the market faces more trouble from other areas.”
Kim and Kris Darney, Ontario-based real estate agents who focus on short- term sales, said housing conditions continue to be bleak in the region.

“I believe those numbers are somewhat of a false hope for the Inland Empire,” Kris Darney said.

The Inland Empire became a poster child for the foreclosure crisis after a housing market boom incinerated under the subprime lending debacle. By January, the city of Fontana had spent more than $1.7million in federal funds on rehabilitating foreclosed homes under President Barack Obama’s 2009 federal economic stimulus.

The Darneys said they see more banks allowing homeowners to sit on their property without making payments, which they attribute to the decrease in foreclosure filings.

“They’re letting people hang out in their homes right now,” Kim Darney said. “They don’t want more (foreclosures) in their inventory.”

California continued to lead the nation in the total number of foreclosure filings with about 69,700, according to RealtyTrac. San Bernardino County had the sixth highest foreclosure rate in the state. Riverside County ranked third.

rebecca.cho@inlandnewspapers.com
909-483-9391

Now that actress Sandra Bullock and ex-husband-to-be Jesse James are selling their Sunset Beach, CA home, another one of their homes is getting some attention and that’s their Big Easy home. Known as the “Koch-Mays House,” it was built in 1876 for James Eustis, a United States Senator and Ambassador to France. Bullock and James bought the home in 2009 for $2,250,000.

Bullock was recently seen with moving vans at the house, but it is not known if she’s moving stuff in, or out. Reports have surfaced that Bullock will be moving to New Orleans to raise her newly adopted son, 3-month-old Louis Bardo Bullock, who is a native of New Orleans.

The Koch-Mays house is described as a “…Swiss-style chalet with elaborate scroll work, rich cast-iron ornamentation, and other Gothic details.” Eustis and his family lived here until 1903, and the house was then owned by by architect Richard Koch until 1953.

I found this interest…recently printed in Bnet…Steve Tobak

You know them as bean counters, pencil neck, human calculators, fraudulent embezzlers, or tight control freaks with no sense of humor or sense of the business. When it comes to CFOs, stereotypes abound. Interestingly, I’ve known dozens of CFOs over the years, and the only thing I’ve found to be true about those stereotypes is that they’re all myths. 

Sure, most CFOs can calculate gross margin and earnings per share in their heads, but so can I, and I’m no finance geek.   

This much is true. Behind every great CEO there’s a great CFO. And, if you’re a manager or executive with considerable expense or revenue responsibility, the CFO can make your life a breeze or a nightmare, although that depends mostly on you.

Top 10 CFO Myths

1. They’re fastidious bean counters. Of course they’re good with numbers since they have to spout financials off the top of their heads all day long, but it’s mostly big-picture stuff for critical decision-making, not endless facts and figures. 
2. They hate marketing. What CFOs actually hate is marketing with no metrics or relationship to revenue or the business. As a marketer, I’ve always enjoyed great relationships with my CFOs.
3. They’re control freaks. On the contrary, with ultimate responsibility for finance but little control over the spending, they actually have to be just the opposite or they’d go nuts.
4. They’re tight-wads. The business model, which sets the tone for much of what ends up on the income statement or the balance sheet, is usually determined by the CEO and approved by the board of directors. The CFO manages to the model but doesn’t actually control what it is.  
5. They have no impact on the business itself. Many CFOs take point on mergers and acquisitions, restructuring, even strategic planning. All have a material, direct impact on the business. Plus they ask tough questions, which is all good. 
6. They often commit accounting fraud. You can always point to an Enron or a WorldCom, but these days, as stewards of corporate governance, CFOs have to be ethically bulletproof since they’re usually the first to go to jail.
7. They’re in the CEOs back pocket. In dysfunctional organizations, that can be true, but they’re just as likely to be at each other’s throats. I’ve even known a few CFOs who went head to head with their boss and either stepped down or got the CEO canned.
8. They have an easy job. CFOs are some of the hardest working executives I’ve known. They usually run incredibly lean organizations to set an example for the rest of the company. 
9. They have no management depth. Quite a few actually go on to become excellent presidents, COOs, or CEOs. Believe it or not, I’ve even known several in high-tech who went on to run companies. Go figure.
10. They have no personality. They’re as outgoing, fun-loving, and interesting as you and me. Their sense of humor can be a bit on the dry side, though. Not sure why that is.

The only caveat to this whole thing is that we’re talking about CFOs and maybe some controllers who eventually go on to become CFOs, not other accounting types who, for all I know, may very well fit the stereotypes.

What’s your experience with CFOs been like?

Zillows report shows that 1/3 of all homes sold in February 2010, were sold for less than the orginal loan amount or, Short Sale.

In the Forbes video below, Amy Bohutinsky, Zillow VP of Communications, describes the difficulties that Celebrities are having selling there homes despite their famous or “infamous” (Bernie Madoff)  reputations.

It appears that even the most famous of figures (Obama’s) have a percieved value, often less than what was once perceived.

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As real estate professionals we have spent the last several years helping homeowners avoid foreclosure in this ever changing economy….

We can finally say____Washington DC is waking up!

The major networks and newspapers are advertising Short Sales…..could it be because……

As of the first of the year 24% of homes in America with mortgages were underwater….negative equity.  1 in 4 homes are upside down in equity.  Simply put, if you walk outside your front door and turn either way, every 7th house=homeowner  is in default.  Better know as pre foreclosure!

Here’s another startling fact:  80% of homes that go to foreclosure were never listed for sale!  Some of you reading this right now are facing tough choices.  Think about it, most of those 80% of homeowners never expected to loose their home.  Most likely there were factors that made them believe somehow it would work out.

• Applied for a loan modification and found out too late that the loan modification offered did not lower the payment enough to keep the home.  *Keep in mind that during the modification process the foreclosure process does not stop.  Unfortunately, by the time the lender gets back to you about the results of the loan modification in many cases the sale date for foreclosure is pending.
• Homeowner accepted a loan modification and was not able to maintain the agreed payments.  *Again, these lenders proceed with foreclosure process simultaneous with loan modification process.  The foreclosure process is accelerated do to this and when payment arrangements are not kept the foreclosure moves forward.
• Homeowner entered into a forbearance agreement with lender and was not able to make just one payment.  At this time the lender does not have to notify the homeowner of foreclosure sale.  Home is sold.
• Denial….something that most of us can identify with.  First comes the notice of default, then the trustee sale and then the sale date.  During this period of time, you have every intention of working this out, somehow, you just know you can save your home.
• Pride….another personality trait that most of us have experienced in our lives.  The fact that for whatever valid reason you were not able to save your home, you could not face talking to someone about alternatives to a foreclosure.  *Did you know that foreclosures are public record.  Your names are posted in the local newspapers, a Short Sale is just a regular sale in the eyes of neighbors, family and friends.  You don’t even need a for sale sign on the property.  In fact, 99% of our sales never have a sign posted on the property.

We have clients that need to sell for various reasons, some due to hardship and others making well thought out business decisions regarding their future and the negative equity they are facing if they choose to continue holding onto a property that mirrors the neighbors home that just sold for $150,000 less than they currently owe.

If your home is upside down in equity, and you need to find out more about a short sale contact us.  We can help you by finding all of your options.

Not only has the United States Treasury stepped in to help homeowners with a new program called HAFA, Bank of America has announced they are going to be implementing what they refer to as “Cooperative Short Sale”  this will mirror the HAFA program but have less stringent guidelines for participants.

This is huge coming from Bank of America, as they originated one in every two loans on mortgages in America!  We have identified “like” programs with other lenders such as,  Wells Fargo, Wachovia, HOMEQ, etc…..

You will be hearing more about Strategic Default as the days move on, many lenders are accepting of these types of sales.  Basically, homeowners who have negative equity of $70,000 or more are looking at their home much like an investor looks at their portfolio…time to cut your losses.

Listen to Jeff Lischer Top NAR Executive Talk Candidly About HAFA Short Sales

As of 2009 more than 11.3 million residential properties fell into negative equity. That equals 24% of all homes in America with a mortgage. Consider walking outside of your front door, and realizing that 1 in 7 of your neighbors are in jeopardy of foreclosure.

Questions regarding tax ramifications are high on the list. We’re not CPA’s, but do understand the mortgage debt relief act that President Bush put in place in 2007 that works with the IRS to eliminate any Capital Gains taxes when you short sale your primary residence. Governor Schwarzenegger is looking to legislators to bring a bill that will give relief to homeowners that do short sales.

Homeowners that are considering a short sale also wonder how hard it will be to purchase another home. There are current programs that allow a seller to purchase at the same time as they short sell. These loans follow FHA Guidelines and one of the conditions are that the seller can not miss any payments during the short sale. In most cases, a seller can buy again in about 2 years if they meet lender requirements.

Realize that you have options, your not alone….24% of Americans that have a mortgage payment are behind. Banks have openly shared that a short sale is looked upon as a favorable solution to a foreclosure. We have worked with many clients that have never missed a payment and have decided to short sale for various reasons,

Short sales are a dignified solution to a bad economic situation.

Some of the highlights of HAFA include an incentive of up to $3000 for relocation costs that is paid to the home seller at close of escrow with a successful short sale. Non recourse settlements are also a huge benefit to the homeowner under the new program. If you are looking for alternatives to foreclosure, a short sale may be the answer.

We will schedule a discreet confidential meeting with you to answer all of your questions regarding a short sale.

24% of all Americans that have a mortgage are underwater, you’re not alone. A short sale is a dignified solution to a bad economic situation.