More Help for Military Members Facing Foreclosure

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The members of our military preform a valuable service to our nation (us).  Because of that they are treated a bit differently than the general population.  There are programs to help with crisis & stress, housing, etc.  Since their needs are often very different than the general population’s, many programs do not fit their situations.

Foreclosure prevention is one such case.  A group of investors, insurers, and others have gotten together to come up with a plan to help this segment of our population.  The group just completed a brainstorming session according to HOUSINGWIRE ($ read it here).  Topics covered were getting those in need to attorneys, housing authorities, and others able to help their specific situations.

With Beale right in our back yard, we think these programs can have a a positive effect in our area.  We think it is good that those we depend so heavily upon will have such help available.  As always, we are interested in your opinions and point of view.  Please leave your comments below.

How does this effect you? Do you have questions about YOUR best action? Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808), send us an * email, or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

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More Refinance Help and/or Hope

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In our last post we highlighted some of the confusion in the refinance spotlight, and some hope.  A post today in the Los Angeles Times: Business ($read it here) announced another attempt by the federal government to get the housing industry woes behind us.

One of the things hindering the purchase of foreclosed homes is the lack of qualified buyers.  As homeowners loose their homes to foreclosure they are forced to become renters (or share residence with family and/or friends).  Even owners who complete a short sale are removed from the buying population for a period, although generally about 1/2 the time of a foreclosure.

The new plan from the FHA includes assistance for investors that would turn these foreclosed homes into rentals.  That would help with the over-inventory of homes coming to market; the fabled ghost inventory.  It would help the economy get moving again, and help our neighborhoods.  The plan has yet to go before congress and is not expected to be an easy sell, but there is hope.

Another section of the proposed new plan is to streamline the refinance process.  Two major gains here would be the reduction of time to get an approval (or rejection) and the added hope that it can actually be done.  Today’s processes, even though much improved over previous times, still causes some to just quit, or not even start the process.

Combined with the underwater assistance (see yesterday’s post) the need for a current appraisal is removed.  Likewise the income verifications; simply proof of a job.  One requirement for all this streamlining is that the payments be current on the home mortgage.

How does this effect you? Do you have questions about YOUR best action? Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808), send us an * email, or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

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Loan Modifications: Whom to Believe

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Interest rates are at historic lows.  Many currently active loans were written at MUCH higher rates than are currently available.  Refinancing can save hundreds of dollars each month.  For many, it can even mean the difference between staying in their dream home or being foreclosed upon.

Everywhere you turn you hear warnings about loan modification scams.  Or worse, about someone that just got ripped off!  The news is full of negative reports.  C.A.R. (California Association of Realtors®) has recently published another advisory ($click here to read it) warning against the unscrupulous.

Recently Freddie Mac was accused of betting against itself ($read more here)!  HARP, HAFA, and other government programs have tried to help.  It seems like each lender has tried something of their own making.  Many homes are under water (meaning their value is less than the amount of the loans against them).  The feds stepped in with the 115% loans, then the 125%.  We heard today that the limits will be raised to 150% in February, and possibly removed altogether later.

An article came across my desk today aimed at helping home owners manage their own loan modifications ($read here).  It’s enough to scare off most, and it’s just one of many parts!  And, of course, while you are doing all this you must also make a living. 

Sooooo….back to the original question: Where does one turn?  While there may be some good companies out there specializing in loan modifications we are generally dubious.  We are uncomfortable with the idea of using someone’s bad situation to our advantage.  Yes, as a business costs must be met, but profits should come from somewhere else.

That is why we have establish a team within our group for that purpose.  We can help clients without having to profit.  We believe we will receive our benefits by helping others and making clients that will come to us when things are better.  Everyone wins!

How does this effect you? Do you have questions about YOUR best action? Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates              Free Home Warranty

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Home Rescue Group                    Free Home Market Analysis

              Yuba-Sutter Real Estate Today

Home Sales and/or Purchases now Harder with FHA Loans

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FHA loans have always been a great way for a young (just beginning) family to get into home ownership.  They require less down payments, have lower requirements for income and other qualifications.  They are generally guaranteed by the government.

However, the recent price downturn has caused some problems with them.  At a time when buying is at an all-time great, many are left out because they are unable to save enough to make the down payment (even though it is small) and pay all the closing costs.

A home seller might offer to pay some or many of those closing costs in order to get their home sold.  Makes sense, right?  That’s the normal way of doing business.  But, in an effort to prevent a repeat of the financial meltdown FHA has limited the amount that can be contributed by sellers. 

On the other end of the equation, in order to get our economy on the road to recovery (or moving faster) we need to get the foreclosures off the market (read sold).  Prices and interest rates are creating that perfect buying scenario for the beginning home owner, and they are a great source to clean up the REO market. 

This is the group of buyers willing to put in the work as required on some of these homes.  With sweat equity they then have more home than otherwise possible.  It just makes a great way to get started, and helps the market at the same time.  It cleans up our neighborhoods, stabilizes the market, puts more people to work…the list goes on.

Well, it looks like the FHA is NOT seeing this, and may lower the limits on seller contributions allowed.  This will make it harder, or impossible, for some to buy.  While we do not want a repeat of the meltdown, we do think the recovery needs a little help.

$ To read the full notice from CAR click HERE.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

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State Finds Untapped Money Source!

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Proposed changes in the Governor’s Budget call for “consolidating” some agencies.  One of those would be the DRE (Department of Real Estate).  It is all dressed up as a way to save money by eliminating duplicate expenses, thereby reducing the need for tax dollars.

We see it as a state level reiteration of the Social Security fiasco.  By “combining” agencies they are combining money pools.  Read that as taking money; money that is used strictly to regulate real estate practices and protect the general public.  While we don’t enjoy regulation any more than the next guy, there is an absolute need for protection from the unscrupulous.

Could this protection be accomplished or even improved by joining forces with other agencies?  Possibly; everything can be improved.  But that is not the object here.  This is a budget maneuver.  This is being touted as a cost savings.

How can you save when the cost is already $0?  You read the right; it’s not a typo.  The DRE is funded not by tax dollars, but by the fees we pay for licenses and services.  Part of the fines collected are also added to this pot.  Operating costs and enforcement are taken from this pot.

This is where the comparison to Social Security comes in.  The DRE has a positive account balance.  This is required to operate without using credit, as we do.  By “combining” DRE with tax supported agencies, our money gets added to their pool: you know, that pool that is not only dry but deeply in debt!

End result: Increased cost to tax payers AND less protection!  This is such a disgrace that the California Association of Realtors® is once again stepping in to support the DRE in their defense of the measure.  Once again government is asking you to pay more and accept less for it!  Time to say “NO”!

$ To read the notice from CAR click HERE.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

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Expanding into the Spanish Communities

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For some time our Spanish speaking friends have been at a bit of a disadvantage in the real estate world.  While some, like us, have realized the importance of nurturing relationships, it is a difficult task when a language barrier is present.  Many, even big companies, still are unable to deal with it.

Some have hired agents specifically to fill this need.  We, working as a team, have the ability to put an agent in front of a client that will make them comfortable.  But that still left a gap.  Unlike those of us comfortable with the English language, the internet was still pretty much unreachable.

Last month C.A.R. launched it’s new service: a Spanish based web site.  Called Sucasa the idea is to level the information availability.  We’d like to hear how it’s working.  What needs working on, what works, etc.

$ To read the notice from CAR click HERE.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

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Home Rescue Group          Free Home Market Analysis

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FHA anti-Flipping Rule Exclusion Extended

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Some time back, in an effort to protect the public from predatory practices the FHA laid out some very strict rules regarding how investors could, or could NOT, use federally insured loans to finance their business.  Flipping is the general term used to describe the practice purchasing a home needing repair, then quickly doing that repair and reselling the home at a profit.

Unfortunately, some unscrupulous types gave the practice a dirty name, even committing bank fraud in their purchase practices.  They might purchase the home at an artificially low price by misrepresenting the home’s and neighborhood’s value, then resell it at a huge profit doing little or no repair work.

A second unsavory practice we’ve observed is doing only superficial and/or cosmetic work leaving the real defects but hiding them from view.  In the latter case the buyer is actually defrauded by misrepresentation of the home’s condition.

In an attempt to curtail this, the feds refused to insure the flip type transactions.  The unfortunate result was that honest investors and contractors were also prevented from getting the funding needed to help get these blighted homes into a salable condition and back onto the market.  For this reason we applaud the recently overturned decision.  Within strict guidelines flips can now be funded using FHA guaranteed loans, and the new home owner can use and FHA loan to purchase it.

The practices the decision tried to stop are already illegal.  It is illegal to misrepresent the value to the bank in order to buy a home, and it is also illegal to NOT disclose all known facts to a buyer that might influence what a prudent buyer might be willing to pay (set the price).

$ To read more on the overturned decision go HERE.

How does this effect you? Do you have questions about YOUR best action? Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates        Free Home Warranty

    Search the MLS                                 Over the Back Fence

     Home Rescue Group                               Free Home Market Analysis

                           Yuba-Sutter Real Estate Today

Mortgage Modification and Foreclosure Prevention Counseling

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As you faithful readers know, Encore Real Estate Services has assembled a team to help distressed homeowners (and now in two cases co-signers) who are having trouble making their mortgage payments.  That team, the Home Rescue Group has had very good success at getting loan modifications through.  They are not magic, it does require the home owner to participate.

Foreclosure counseling can increase one’s chances, double according to one recent study published by core Logic.  That article “Foreclosure counseling doubles the chance of mortgage modification” cites information gathered in surveys conducted by The Urban Institute on more than 800,000 households that received home loan modifications in the years 2008 & 2009.

That study nearly parallels what we have seen in our efforts to help our neighbors.  While it is no guarantee of success, all too many can attest to the results of NOT doing everything possible to help yourself.  While the funding had been pulled from these programs, it has been reinstated.

Not only reinstated, but INCREASED.  And the terms have made it possible for many that were previously excluded to now get the relief they so desperately need.  Owe more than your home is worth?  That is a pretty common scenario in today’s market.  The old program allowed a 15-25% deficit, but the new program ignores that number totally.  50% underwater?  Can do!

Questions about YOUR best action? Contact us today for your free, no obligation consultation. Call or text 530 315-2808. Email Taxes@EncoreRES.com(Encore Real Estate Services).

For ALL your real estate related needs and/or questions call or text ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates                     Free Home Warranty

              Search the MLS                     Over the Back Fence

Home Rescue Group                 Free Home Market Analysis

                     Yuba-Sutter Real Estate Today