Fremont Real Estate Blog

If you have skin in the game you care about the outcome. From DS News: < http://dsnews.us1.list-manage.com/track/click?u=59816bad6939d5a7dd87e45a5&i d=189455c42e&e=ebe71b748c > Fed Study Reveals Down Payments Help Prevent Defaults Research released this week by the senior research economist at the Federal Reserve Bank of Cleveland reveals homeownership is more sustainable for people who come to the table with down payments. The study examines the types of homeowner assistance that the government uses to promote homeownership -- generally down payment subsidies or interest rate subsidies -- and finds down payment subsidies are more helpful and less expensive. < http://dsnews.us1.list-manage1.com/track/click?u=59816bad6939d5a7dd87e45a5& id=6471cf8336&e=ebe71b748c > > Read More -sunil SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA, CPA (inactive) 38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536 < http://www.sunilsethi.com/ &

From DS News: < http://dsnews.us1.list-manage.com/track/click?u=59816bad6939d5a7dd87e45a5&i d=195a31d43d&e=ebe71b748c > Four Federal Foreclosure Mitigation Programs on the Chopping Block Rep. Spencer Bachus, chairman of the House Financial Services Committee, announced this week that he has scheduled a subcommittee hearing and full committee markup of four bills that will terminate what he says are "failed and ineffective housing foreclosure programs." On the chopping block are the Home Affordable Modification Program (HAMP), HUD's Neighborhood Stabilization Program, the Federal Housing Administration (FHA) Short Refi Program, and the Emergency Homeowner Relief Fund passed under the Dodd-Frank Act. < http://dsnews.us1.list-manage.com/track/click?u=59816bad6939d5a7dd87e45a5&i d=382dab3d61&e=ebe71b748c > > Read More -sunil SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA, CPA (inactive) 38750 Paseo Padre Pkwy Suite B3 /

The following was excerpted from CAR's website. Color coding and bold added by me. 2011 New Federal and State Statutes Including Statutes Passed During 2010 SB 183 < http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0151-0200/sb_183_bill_20100 507_chaptered.pdf > (eff. Jan. 1, 2011) Carbon monoxide detectors; smoke detectors and water-heater bracing disclosure This law revises the TDS and MHTDS to include a disclosure regarding compliance with the smoke detectors and water-heater bracing laws (eliminating the need for separate disclosure forms). The TDS and MHTDS will also add a disclosure regarding carbon monoxide detection devices. This law enacts the Carbon Monoxide Poisoning Prevention Act of 2010. The law requires a carbon monoxide device (battery or hard-wired) to be installed in a "dwelling unit intended for human occupancy." A violation is punishable by a maximum fine of $200 for each offense. Owners of residential rental property must also comply with t

From DS news: < http://dsnews.us1.list-manage.com/track/click?u=59816bad6939d5a7dd87e45a5&i d=2d2a3fb739&e=ebe71b748c > FDIC Said to be Considering $1B Lawsuit Against Former WaMu Execs Another lawsuit may join the ranks of suits against banking executives for their part in the housing collapse. There are reports that the Federal Deposit Insurance Corporation (FDIC) is said to be considering a lawsuit against former executives of the now defunct Washington Mutual bank, for alleged fraudulent lending practices. The government agency may seek up to $1 billion in damages. The FDIC took control of Washington Mutual and sold it to JPMorgan Chase for $1.8 billion in 2008. < http://dsnews.us1.list-manage.com/track/click?u=59816bad6939d5a7dd87e45a5&i d=b8bbcfe0f0&e=ebe71b748c > > Read More -sunil SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE 38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536 < http://www.

The man who's reckless consideration to risk, guided by his own ego, gets away with helping creating the biggest bubble we'll most likely experience, but serves no time. It's amazing that the criminal justice systems only works for petty crimes (2 oz of illegal drug puts you away for 2 years, but $2 trillion reduction to corporate wealth and nothing happens to you. The justice system can wastes too much effort on minnows and lets the big fish swim free. . < http://dsnews.us1.list-manage1.com/track/click?u=59816bad6939d5a7dd87e45a5& id=5cfc2b482d&e=ebe71b748c > DOJ Closes Investigation of Former Countrywide CEO Mozilo After paying a $22.5 million fine, and after Bank of America footed the bill for a $45 million settlement on his behalf, former Countrywide CEO Angelo Mozilo has had his name cleared. Criminally, at least. In October Mozilo settled a civil lawsuit with the Securities and Exchange Commission for $67.5 million, while not admitting or denying fault

From DS news < http://dsnews.us1.list-manage.com/track/click?u=59816bad6939d5a7dd87e45a5&i d=09660e7bcd&e=ebe71b748c > Mortgage Delinquencies Fall to Lowest Level in Two Years The delinquency rate for mortgage loans on single-family residential properties dropped to 8.22 percent at the end of 2010, the Mortgage Bankers Association said Thursday. That's down about 10 percent from the rate reported by the trade group three months earlier and is its lowest mortgage delinquency reading since the fourth quarter of 2008. While all delinquency buckets posted declines in Q4, loans in foreclosure tied the all-time record high in MBA's survey as resolutions were delayed due to robo-signing issues and case reviews. < http://dsnews.us1.list-manage.com/track/click?u=59816bad6939d5a7dd87e45a5&i d=fe4c5eda22&e=ebe71b748c > > Read More -sunil SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE 38750 Paseo Padre Pkwy

Politicians are grand standing in front of their constituents - but MERS isn't taking homes away from people. People are not paying their mortgage, and that is what caused the foreclosure proceedings. Until new owners take over, and the sooner the better, we won't be able to put this behind us. < http://dsnews.us1.list-manage.com/track/click?u=59816bad6939d5a7dd87e45a5&i d=29b004f396&e=ebe71b748c > Conflicting Rulings Abound in MERS Judgments Last week a New York judge ruled that the relationship between Mortgage Electronic Registration Systems (MERS) and its members is not one in which the company can act on behalf of the lenders in filing documents and proceeding with foreclosures. But judges that same week in Kansas and Massachusetts ruled the connection between the company and its members does allow for such actions. MERS issued a statement Wednesday saying it plans on making some changes so that members are not allowed to foreclose in MERS' name. <

Home buyer tax credit repayment begins for 2008 buyers Most home buyers who claimed the federal tax credit of up to $7,500 for buying their first home in 2008 are required to start repaying the credit in 15 annual installments, beginning with their 2010 tax returns. The credit-some form of which was offered for qualified home purchases in 2008, 2009, and 2010-has different repayment rules depending on when and under what circumstances the home was purchased. As tax season approaches, this may cause confusion among home buyers who received the tax credit. The IRS is sending a letter to taxpayers who claimed the credit that explains if, when, and how the buyer has to repay the credit. There are different IRS letters for different situations, including a purchase of a home in 2008, 2009, or 2010; a sale of a main home; or a change in the use of the main home. The IRS website at www.irs.gov < http://www2.realtoractioncenter.com/site/R?i=4qocZRG_8gTEGx4Wo2ySBQ. .> contains detailed in

From DS news < http://dsnews.us1.list-manage1.com/track/click?u=59816bad6939d5a7dd87e45a5& id=53eab5f644&e=ebe71b748c > FHA Raises Annual Mortgage Insurance Premiums The Federal Housing Administration (FHA) is wasting no time putting at least one of the Obama administration's housing finance reforms into place. The agency announced this week that it is implementing a new premium structure for FHA-insured mortgage loans. The agency is increasing its annual mortgage insurance premium by a quarter of a percentage point on all 30- and 15-year loans. The new structure applies to new loans insured by FHA on or after April 18, 2011. < http://dsnews.us1.list-manage.com/track/click?u=59816bad6939d5a7dd87e45a5&i d=24f2f8f66d&e=ebe71b748c > > Read More -sunil SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE 38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536 < http://www.sunilsethi.com/ > www.sunilsethi.c

From DS News The Treasury Department < http://www.treasury.gov > released the Obama administration's plan Friday for reforming the nation's housing finance system and winding down Fannie Mae < http://www.fanniemae.com > and Freddie Mac < http://www.freddiemac.com > . -sunil SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE 38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536 < http://www.sunilsethi.com/ > www.sunilsethi.com CA DRE#: 01173766

Wall Street Journal Cash buyers lift housing Buyers in markets around the U.S. are snapping up homes in all-cash deals, betting that prices are at or near bottom and breathing life into some of the nation's most battered housing markets. Read the full story < http://www2.realtoractioncenter.com/site/R?i=s13QvaJq7DskwGbc6Nd-VA. .> -sunil SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE 38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536 < http://www.sunilsethi.com/ > www.sunilsethi.com CA DRE#: 01173766

Home affordability returns to pre-bubble levels Home affordability returned to pre-bubble levels in a growing number of U.S. markets over the past year as price declines laid the groundwork for a housing recovery. Read the full story < http://www2.realtoractioncenter.com/site/R?i=Q07e47Kt5DQVF-0hcVP8cA. .> -sunil SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE 38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536 < http://www.sunilsethi.com/ > www.sunilsethi.com CA DRE#: 01173766

I remember the correction of '79-81 (caused by the oil spiking), then 91-93 (caused by oil spiking), then 2000-2003 caused by the dot.com blow-out and then the one we're getting out of now. The New York Times Housing bubbles are few and far between What's the outlook for home prices over the next decade? It's not easy to tell. Read the full story < http://www2.realtoractioncenter.com/site/R?i=YvEKQNMtpITR5N_rR5UH-Q. .> -sunil SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE 38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536 < http://www.sunilsethi.com/ > www.sunilsethi.com CA DRE#: 01173766

I hope that's it. Hopefully, there's nothing more going on. < http://dsnews.us1.list-manage.com/track/click?u=59816bad6939d5a7dd87e45a5&i d=692ddfa110&e=ebe71b748c > Freddie Mac's Chief Operating Officer Resigns Bruce M. Witherell resigned from his position and responsibilities as chief operating officer of Freddie Mac today, according to a regulatory filing. The GSE says Witherell is stepping down "for personal reasons." His resignation is effective immediately. -sunil SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE 38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536 < http://www.sunilsethi.com/ > www.sunilsethi.com CA DRE#: 01173766

I've been using signature software called Docusign for 2 years now, and have become very dependent on it, but unfortunately the last month, it's been impossible to get it anything accomplished on it because of connection issues. I've tried to get the issue resolved by Docusign's tech support - but the folks there aren't very helpful. It's time to check out the free competitive signature service provided by CAR. -sunil SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE 38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536 < http://www.sunilsethi.com/ > www.sunilsethi.com CA DRE#: 01173766

This was passed to me by a couple of bank of America lenders I work with. February 1, 2011 County of Santa Clara First-Time Home Buyer Program Updates Mortgage Credit Certificate's Update: Applications will be accepted beginning Monday, January 7, 2011 On January 26, 2011, the California Debt Limit Allocation Committee (CDLAC) awarded Santa Clara County's Mortgage Credit Certificate Program (MCC) an additional $3,041,670 in MCC tax credits to be issued to qualified first-time homebuyer's. The MCC Program is a federal income tax credit equal up to 15% of the homebuyer's interest paid on their first loan. Maximum Income Limits for 2011: 1-2 person household: $103,500 3+ person household: $119,025 Maximum Purchase Price Limits for 2011: $570,000 for Resale Properties $630,000 for Newly Constructed Propert

From DS News: < http://dsnews.us1.list-manage1.com/track/click?u=59816bad6939d5a7dd87e45a5& id=0b6e0cf12f&e=ebe71b748c > Clear Capital Sees Signs of Upturn in U.S. Home Prices Clear Capital has released new home price data, with an encouraging, albeit cautious, analysis. The company reports that through the end of January, national home prices are down 1.6 percent on a rolling quarter-over-quarter basis. But despite the negative quarterly price change, Clear Capital says U.S. home prices stopped declining in early January and have posted their first uptick since mid-August 2010. The company says the likely explanation for the sudden increase is the slowing of the rate of REO sales. < http://dsnews.us1.list-manage2.com/track/click?u=59816bad6939d5a7dd87e45a5& id=169115ac54&e=ebe71b748c > > Read More -sunil SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE 38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536

HAMP has been a failure. It's wasting tax dollars and delaying the inevitable. The system needs to be flushed and the faster it happens the sooner we sail past this housing mess. From DS News: < http://dsnews.us1.list-manage.com/track/click?u=59816bad6939d5a7dd87e45a5&i d=0dab27ee66&e=ebe71b748c > Three Congressmen Call for HAMP's End In more bad news for the Home Affordable Modification Program (HAMP), three congressmen, Reps. Jim Jordan, Patrick McHenry, and Darrell Issa have proposed a bill to end the program. Issa is chairman of the Oversight and Government Reform Committee and introduced the bill at the committee's first hearing last week. HAMP took a beating at the hearing from the lawmakers. They called the program a "colossal failure" and said it's just one more example of why government interference in the private sector doesn't work. < http://dsnews.us1.list-manage1.com/track/click?u=59816bad6939d5a7dd87e45a5& id=6c15cce268

PMI Tax Deductibility Extended Through 2011 Congress recently extended legislation making private mortgage insurance (PMI) premiums tax deductible through 2011! PMI can help people buy a home sooner, by enabling them to put less than 20% of the purchase price down when buying a home. This increase in purchasing power can sometimes be the difference between affording the home of your dreams...or not. What's more, this deduction is not just for first-time homebuyers, so it can be used by current homeowners looking to upgrade to a new home. However, it does only apply to "qualified" residences, which typically include a primary residence and a vacation home, but not an investment property. It's important to note that PMI is only tax deductible for homeowners with adjusted gross incomes of less than $110,000. Borrowers with adjusted gross incomes up to $100,000 may be able to deduct 100% of their 2011 premiums. Deductions are phased out in 10% increments for borrowers wit

Fees for home mortgages increase For the first time since 2009, Fannie Mae and Freddie Mac are raising risk fees charged to lenders on loans they buy for resale to investors. Fannie and Freddie also are adding risk fees to more loans offered to borrowers with exemplary credit. Although lenders could absorb the cost, most are expected to add the fees to loan costs. MAKING SENSE OF THE STORY * To avoid a fee or to receive a discount, most borrowers will need FICO scores of 740 or better and down payments of at least 25 percent. * The fee increases likely will affect most loans with terms longer than 15 years that are sent to Freddie beginning March 1, and to Fannie beginning April 1. * The most notable aspect of the fee increase is that the fees are being added to more loans to borrowers with higher credit scores. With few exceptions, risk fees previously hadn't applied to borrowers with FICO scores of 740 or higher. Read the full story < http://www2.realtoractioncenter.com/sit

This morning's news about lower foreclosures in the 4th quarter should be taken with consideration to the halt on foreclosures because of robo -signing. I see most foreclosures are postponed, and more are being cancelled, and the later I'm guessing is because more short sales are being approved. In January, I had a short sale approved in 10 days. This is a new record for me. It's good to see that short-sales are no longer a waste of time, and I'm sure the banks attitude as well as system improvements are the reason for higher completion rate on short sales. -ss From DS News: < http://dsnews.us1.list-manage.com/track/click?u=59816bad6939d5a7dd87e45a5&i d=a242323f5b&e=ebe71b748c > California's New Foreclosures Fall to Lowest Level in Over Three Years The number of California homes going into foreclosure dropped during the fourth quarter of 2010 to its lowest level in more than three years. According to San Diego-based DataQuick, 69,799 Notices of De