Fremont Real Estate Blog

California is having fewer foreclosure starts. Rents are also increasing. Both are good signs for a future recovery. -sunil The following is from www.Foreclosureradar.com : The first half of 2010 saw relatively good news for most participants in the foreclosure market. Foreclosure cancellations rose as homeowners saw more short sales and loan modifications approved. Investors quickly flipped their foreclosure purchases for solid profits as buyers hurried to take advantage of tax credits. As the tax credits expired, however, the market began to slow. Foreclosure cancellations also began to drop as the government push for loan modifications waned and short sales slowed with the rest of the housing market. Finally, in the beginning of the third quarter, the robo-signing scandal led to dramatically lower foreclosure sales, including a complete halt by Bank of America for nearly two months. Foreclosure Starts 2007-2010 For the first time since the foreclosure crisis began, Arizo...

I've had great success selling listings during the last 18 months, primarily because my competition (REOs and Short sales), don't follow one of more of the basic tenants for a quick sale. 1. Show the property in the best possible way (i.e., make cost efficient improvements prior to putting it on the market, stage if required). 2. Price according to recent sales. This is not rocket science, it requires paying attention to details of the home, understanding what's sold and available in the neighborhood, and managing the coming out party for the house. This last year with the exception two properties, I sold everything in 7 to 10 days. I would love to teach the these REO asset managers how to sell, so they'd stop reducing the value of neighborhoods. The bank are too frugal when it comes to repairs and they have no idea of color or material choices. I remember previewing a property in Weibel they listed for $1M. They painted the interior white (h...

Just released by foreclosureradar: California The number of foreclosures Sold to 3rd parties, typically investors, declined 15.6 percent in September. Most foreclosure investors flip the properties they purchase after taking care of title, occupancy and repairs. This process is taking 44.5 percent longer than it did a year ago, up from 95 days to 137. The number of foreclosure sales that went back to the bank was up 4.9 percent, while the total inventory of Bank Owned (REO) properties increased by 5.3 percent as REO resales slowed. Notice of Trustee Sale filinges declined 17.2 percent while Notice of Default filings were essentially flat with a decrease of 1.9 percent. SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE 38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536 www.sunilsethi.com CA DRE#: 01173766

Because the banks may not have not crossed all their “t”s and dotted all their ‘I’s in doing some foreclosures, lawyers are finding a way to extend the period of time an owner can stay or their property. The owners will still be eventually foreclosed upon, and this action will only result in lining the pockets of some lawyers and raising the transaction cost for future home buyers. Old Republic Will No Longer Insure JPMorgan and GMAC REOs Even more questions about the legality of foreclosure proceedings have prompted Old Republic National Title Insurance to decide it will no longer insure titles to homes foreclosed by JPMorgan Chase and GMAC Mortgage. Chase and GMAC both halted foreclosure sales in 23 states and are reviewing legal filings that they say may have been signed without a notary's presence or without verifying the supporting documents. SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE 38750 Paseo Padre Pkwy Suite B3 / Fre...

C.A.R. just passed me this summary of Senate Bill 931, which sounds like the existing “One Action Rule” that applies in the case of foreclosures, which says the deed holder is allowed one action, either take the proceeds from the foreclosure or a deficiency judgment for the unpaid debt. “No Short Sale Deficiencies: Starting January 1, 2011, a seller's first trust deed lender cannot obtain a deficiency judgment against the seller after a short sale. Providing written consent to a short sale shall obligate the first trust deed lender to accept the sales proceeds as full payment and discharge of the remaining amount owed on the loan. This law applies to first trust deeds secured by one-to-four residential units, but does not limit the lender from seeking damages for fraud or waste by the borrower. Senate Bill 931.” SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE 38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536 www.sunilsethi.co...

DSnews just sent this headline to me: Wells Fargo Puts a Stop to Short Sale Extensions Wells Fargo will no longer delay foreclosure proceedings in hopes that a short sale deal will come through. At the requests of its mortgage investors, including Fannie Mae and Freddie Mac, the bank has stopped granting extensions for distressed homeowners to complete short sales. Going forward, borrowers must close on short sales by the date quoted in their approval letter. The policy change will allow the bank's foreclosure proceedings to advance, even if a short sale is already in negotiation. SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE 38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536 www.sunilsethi.com CA DRE#: 01173766

Fannie Mae is implementing a new rule on unacceptable properties. A property foreclosed upon is ineligible for Fannie Mae Financing until the redemption period is over. Fortunately, most foreclosures in California are non-judical and therefore have no redemption period. Click here for more on California's Redemption period . TBWS alert where I learned about this Watch Video

California Senate Approves Foreclosure Protection When Servicer Errs The California Senate has approved a new foreclosure bill and sent it to the Assembly for review. It lays out two major provisions intended to deter lax behavior on the part of servicers and prevent avoidable foreclosures in the state. The legislation would provide a means of recourse to homeowners whose homes were lost to foreclosure due to serious servicer errors, and it would prohibit servicers from starting the foreclosure process until a homeowner has received a final decision on their modification.

Freddie to Auction REO Homes to First-Time Homebuyers Unlike a traditional foreclosure auction, this will give 1st time home buyers an opportunity to buy homes at a foreclosure auction but with a mortgage. The 1st two events take place in Southern California (Inland Empire) and Las Vegas. check it out. -sunil

Can you believe this is even an option? If FHA is really allowing such a thing, it should be shut down and management should be prosecuted. ATTENTION REAL ESTATE PROFESSIONALS! We have niche programs that will help you close more transactions: 1 Day Out-of-Short Sale - FHA Financing - Standard FHA Financing with 3.5% Down Required. - No Reserves Required - No Minimum FICO (But must have been current on previous home loan) FHA Access - Only 1/2% Down Payment* - No Reserves Required - No Minimum FICO - California Only Conventional Financing with up to 10 properties - Second Home and Non-Owner Occupied Financing - Purchase 1 Unit = 75% LTV - Purchase 2 – 4 Units = 70% LTV FHA $100 Down - HUD REO Properties Only - No Minimum FICO - California Only FHA Good Neighbor Next Door - HUD REO Properties Only - For Selected Professionals (i.e. Police, Firefighters, Teachers, EMT's, etc) - No Minimum FICO - HUD Offers up to 50% discount off list price - $100 down and closing costs financed ...

This was passed to me by Asset Exchange Company , a 1031exchange company. Taxes on Short Sales and Foreclosures According to the IRS, "if you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable." The good news is that the Federal government has provided some relief in the form of The Mortgage Forgiveness Debt Relief Act of 2007. The highlights of this Act are as follow: The Act applies only to forgiven or canceled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. The debt must be secured by the home. Exclude up to $2 million of debt forgiven or canceled by a mortgage lender on a primary residence. Both mortgage restructuring and foreclosures qualify Available for the years 2007 through 2012. Claim the tax relief using IRS Form 982 ( download here ) The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 109...

State Income Tax on Cancellation of Debt in a Short Sale Here's a nice post from CAR legal discussing California's taxation of Cancellation of Debt Income. Posted using ShareThis

I was thinking after the holidays, the lenders might lose their soft heart or patience with various plans to keep home owners in their home. As I've mentioned before if we don't start seeing more inventory this quarter, I don't see why it'll change later for buyers. On a positive for buyers, I did see two examples of short sales attempted and rejected by the lender. One of which should be going to sale today. There are still a lot of buyers, who’d like to buy while mortgage interest rates are low. The Obama administration needs to let the natural foreclosure cycle happen and let buyers into homes who can afford to make the payments on their mortgages. An example of a property that should have been foreclosed on months earler: There was one up for sale today in Southwycke Ter., Fremont. The home is vacant, and by the looks has been vacant for a long time. The roof is leaking and the water has caused mold to set in. The home is being neglected and should have been forecl...

Fannie Mae believes that owner occupants should get 1 st chance at buying a foreclosed property. Though I believe that owner occupants manage a proerpty better in general, I also believe the highest bidder is the best buyer, and if a cash investor is the highest bidder, than let them buy. Read more here: http://www.dsnews.com/articles/fannie-mae-introduces-first-look-initiative-2009-11-25 -sunil SUNIL SETHI REAL ESTATE My Bio: http://sunilsethi.com/about_me.htm Personal: http://www.sunilsethi.com LinkedIn: http://www.linkedin.com/in/fremontrealtor CA DRE#: 01173766

Fannie Mae (which is owned by Uncle Sam), will be implementing a plan for homeowners who turnover their deed to be able to rent their place back. Prospective renters must show that they can afford to pay the new market rental rate and must be able to document that the rental payment is no more than 31 percent of their gross income. So I wonder who’s going to be their property manager? This could be an opportunity to grab some government pork. Read more here http://www.dsnews.com/articles/fannie-mae-becomes-landlord-with-new-deed-for-lease-program-2009-11-05 -sunil SMA REALTY Sunil Sethi / Broker, President, REALTOR, MBA, CPA / SMA Realty 38350 Fremont Blvd. #202 / Fremont, CA 94536 Office 510 793 8600 / Mobile 510 388 2436 My Bio: http://sunilsethi.com/about_me.htm Personal: http://www.sunilsethi.com My blog: http://fremontrealestate.blogspot.com/ LinkedIn: http://www.linkedin.com/in/fremontrealtor CA DRE#: 01173766

An REO (Real Estate Owned) refers to property owned by a bank through the foreclosure process. What happened is that the home went to the court house auction steps. The crier called out the bids for the property, and no one was willing to pay the bank what their opening bid was. As a result it became REO. If an investor bought the property it would be referred to as a foreclosure. The distinction is importance for financing. If it’s REO, you’ll have no problem getting a loan on it immediately after the auction. However if an investor bought the property and put it up for sale, then many banks will say you have to wait 90 days before they’ll lend on the property. Bank of America is one of the few exceptions to the rule. In today’s market most deals fall apart because of the financing, not the house, so choose the financer appropriate to the property. Now if the bank ends up getting the property, the bank hires an asset manager who hires a real estate agent, who puts it on MLS for expos...