The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) recently launched a new program that allows home sellers to purchase mortgage protection coverage and offer it as an additional incentive to home buyers who purchase their home.
The “Home Payment Protection Program” (HPPP) is available through California REALTORS® who offer it to sellers at the time the property is listed. HPPP is optional, is paid for by the seller, and costs either $200 or $275, depending on the amount of coverage the seller elects to purchase.
The program covers both first-time and repeat buyers for 12 months from escrow closing. If the home buyer loses his or her job as a result of a layoff during the qualified time period, HPPP will pay the buyer up to six monthly payments of up to either $1,000 or $1,500, depending upon the level of coverage the seller chose at the time of the listing.
The payment for HPPP is made at the time of closing, per the seller’s escrow instructions. HPPP remains on the property for as long as it is listed with the REALTOR® under the original listing contract. The buyer cannot renew, extend, or enhance the coverage under the HPPP, nor purchase it independently.
Sellers who would like to offer the Home Payment Protection Program should ask for an application from their REALTOR®. REALTORS® can find information about the program and an application at www.cynosurefinancial.com/car.
For many prospective buyers, the thought of going through the home-buying process is often filled with a lot of stress. From finding a qualified real estate agent, to narrowing down your choice of homes and then packing your belongings and moving across town can be an overwhelming process.
-Buying a home is one of the biggest financial decisions you will make in your lifetime, and along with the finances come emotions. When you are choosing a real estate agent to work with, be patient and take the time you need to find an agent that you connect with. Finding a highly-skilled agent who fits with your personality is crucial.
-Every home buyer and seller is in a different situation, so it is important that you don’t compare your timeline and decisions to anyone else’s. As you make your way through the home buying process, remember that there is no right time to buy, just as there is no perfect time to sell. If you find a home that fits your needs, don’t let it slip out of your hands by waiting for interest rates to drop lower as you run the chance of losing out on the home of your dreams.
-It is natural to want to get opinions from those you trust before you make your final choice, but too much input will ultimately make the decision process much harder. Remember to focus on what your immediate wants and needs are so that everyone will be happy with the final decision.
-You probably aren’t going to find a home that is 100% perfect, so it is important to make a list that includes your top priorities that you can’t live without. Be sure to stick to the items on your list and let go of the minor things.
-Negotiation is an important part of the real estate buying process, but be sure you don’t take your negotiating too far. Trying to get an extra-low price or refusing to budge on your offer may cost you the home in the end. Successful negotiation depends on give and take, so make sure you are being fair in your requests.
-Don’t get too caught up in all the physical aspects of a home and forget about the more important issues. While the size of the rooms and the layout of the kitchen might not be exactly what you expected, be cognizant of issues such as noise level, location to amenities and other aspects that will have an impact on your day-to-day life.
-Getting approved for a mortgage should be taken care of well before you find a home and make an offer.
-Create a budget before you move into your new home and be sure to include maintenance and repair costs. Even if you buy a new home, there will be extra costs, so it is important to not come up short and let your new home deteriorate.
-After purchasing a home, a little buyer’s remorse is inevitable, but it will pass. Buying a home is a big financial commitment, but it also yields big benefits. If you are feeling remorseful after buying your home, remind yourself why you wanted to buy a home and what made you fall in love with your new property.
-When choosing a home, buy it because you love it. A home’s most important role is to serve as a comfortable, safe place to live, so don’t get bogged down with thinking about your home’s appreciation.
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In what could be another sign that the housing crisis is far from over, the percent of mortgage holders who are underwater on their homes continued to rise in the third quarter–and some say it could be another eight to 10 months before that trend turns around.
In the U.S., 23.2% of U.S. mortgage holders were underwater, owing more money than the house is worth. That’s up from 21.7% from a year ago, according to Q03 data out Wednesday from Zillow.com. Roughly 13.9 million homes now have negative equity. Many of these homes could end up in foreclosure should borrowers give up making payments on homes that aren’t worth what they owe—let alone building equity. (See “The Great Mortgage Mystery“)
In the latest report, the worst hit areas of the housing bust show small signs of improvement, while new locales saw growth in underwater real estate. In Miami, for example, 42% of homes have negative equity, compared to 45.1% in the third quarter 2009, according to Zillow. That’s in part because many of these underwater homes have been foreclosed on.
In San Francisco, the number of underwater homes has dropped from 24.9% to 20.2%, mainly due to stabilizing home values that are pulling more people out of negative equity, says Stan Humphries, Zillow’s chief economist. The median sales price of existing single-family homes in the San Francisco metropolitan area is up about 25% since last year, according to the National Association of Realtors.
In 1940, the property was built for $110,000. Years later, Nicolas Cage bought it for millions, and then lost it to foreclosure on the county courthouse steps. Recently, it sold to an anonymous buyer listed only as a limited liability corporation for about a third of its last listing price: $10.5 million dollars.
The 1940 Tudor had failed to generate any bids in April when it was offered at the county courthouse steps in Pomona. Six loans totaling $18 million encumbered the house, which the actor had decorated in a style one local real estate agent dubbed “frat-house bordello.” Among personalized touches were garish room colors, three dozen bronze wall sconce holders made from a cast of the Oscar winner’s arm and hundreds of elaborately framed comic-book covers lining the walls.
The mansion, which one local real estate agent described as a “frat-house bordello,” had been highly customized over the years not only by Cage, who painted the rooms in “garish colors,” hung bronze wall sconces made to look like the arms of the Oscar statue, and lined the walls with more than 300 “elaborately framed comic book covers,” but also by singer Dean Martin, who commissioned a 2,500 square foot entertainment complex and by singer Tom Jones, who erected a $60,000 wall to “keep adoring fans at bay”. Other unique design elements included model trains on raised tracks circling the breakfast room and two bedrooms, an Olympic-sized pool and a central tower.
The sale of the house also left five of the six lenders holding liens against the house hanging, since when the foreclosure failed ownership reverted to the foreclosing lender. There were a total of six liens in the sum of $18 million against the property. Bob Baker, a local foreclosure data analyst, described the situation as “a microcosm of what’s going on in our state [California].” He added that people are still taking out loans as a “survival tactic” to pay other loans and meet expenses, and that he has seen as many as 13 loans on a single property. The buyer ultimately was able to get such a low price on the property because once the courthouse event eliminated the other lenders from the collections process, the primary lender was able to sell for much less than the sum of all the liens on the property.
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U.S. pending home sales slipped for the first time in three months in September as foreclosure moratoriums slowed sales.
The National Association of Realtors’ index for pending sales of existing homes fell 1.8% to 80.9, the industry group said Friday. Economists surveyed by Dow Jones Newswires had expected pending home sales would increase by 3% in September.
Year over year, the pending-home-sales index is 24.9% below its level of 107.8 in September 2009. The NAR on Friday also revised its August index upward slightly to 82.4 from the previously estimated 82.3.
The NAR index is based on pending sales of existing homes, including single-family homes and condominiums. A home sale is pending when the contract has been signed but the transaction hasn’t closed. Pending sales typically close within one or two months of signing.
Pending home sales plummeted in May after the expiration of a government tax credit program but had been on the rise in July and August as rock-bottom mortgage rates and distressed property sales enticed buyers.
A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage. They may pocket your money and do nothing to help you save your home from foreclosure.
A company/person guarantees they can stop a foreclosure or get your loan modified. NO ONE can make this guarantee to stop foreclosure or modify your loan. Legitimate, trustworthy HUD-approved counseling agencies can assist you with options and facilitate communication with your mortgage company.
A company/person advises you to stop paying your mortgage company and pay them instead. Despite what a scammer will tell you, you should never send a mortgage payment to anyone other than your mortgage lender. If you have trouble making your monthly payment, contact your mortgage lender.
A company pressures you to sign over the deed to your home or sign any paperwork that you haven’t read or you don’t fully understand. A legitimate housing counselor should not and will not pressure you to sign a document of any kind.
A company claims to offer “government-approved” or “official government” loan modifications. These may be scam artists pretending to be legitimate organizations approved by, or affiliated with the government. Check to be sure by contacting your mortgage lender directly to learn more about government programs for which you may qualify.
A company/person you don’t know asks you to release personal financial information. Check to be sure you are speaking with a legitimate company/person by contacting your mortgage lender directly
If you are facing foreclosure go online to the U.S. Department of Housing and Urban Development Click Here
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When the New York Times can’t suggest a logical reason for widespread banking practices that’s a sure indicator that something is horribly broken and that something seems to be much of the entire banking industry’s mismanagement of short sales.
In an excellent article by Michael Powell published October 24, 2010 entitled “Short Sales Resisted as Foreclosures are Revived,” Mr. Powell sheds light on numerous actual banking decisions that just do not make financial sense in any marketplace. The cases he cites, however, are in Maricopa County, Arizona.
For example, he cites the case of one Ms. Lydia Sweetland. Having lost her job, drained her savings and retirement funds, she applied for a mortgage modification and (surprise?) was summarily rejected by GMAC bank. Ms. Sweetland reluctantly realized (after seven months of being unable to pay that mortgage) that perhaps a short sale would bring this awful situation to an acceptable conclusion for all concerned. Her mortgage balance was $206,000. She found a buyer willing to pay $200,000 for the property. That offer was rejected and she was notified that GMAC would foreclose on her within seven days, losing about $19,000 in the process that the bank would not have lost had they accepted the short sale proposal.
There’s no need for logic and fairness when all your bad decisions are bailed out
In a half dozen more cases examined by the New York Times, Bank of America rejected short sale offers and foreclosed at lower prices. Brilliant! Having received Billions of dollars in federal bailouts (paid for, as we all know, buy US, the little guy federal taxpayers) Bank of America and other large banks can apparently perpetuate an economically disastrous practice that wrecks individual lives with nary a thought of logic or equity.
Holding 31 per cent of pending foreclosures in Maricopa County (which includes Phoenix and Scottsdale), this one bank is set up to lose hundreds of millions more than necessary by rejecting short sales and proceeding to foreclosure. I wonder, is Marie Antoinette the CEO of the bank? “Let them eat cake” has never resonated so strongly in the country as this economically destructive attitude does, now. Having never adopted the guillotine, we have no instant remedy to snap bank management out of this arrogant and financially stupid policy so the consumer rightfully feels disrespected and abused. That’s NOT a good thing. If the banking business thinks nothing of losing an unnecessary extra 10% of the principal balance rather than work with a buyer, they best not be surprised when the sanctity of the contract becomes invalid among most consumers. It’s a prescription for economic chaos.
“The dog ate my homework”
When it comes to ludicrous “justifications” for indefensible policies, it’s hard to top the excuse that kids sometimes use to “justify” not having their homework done. Listen, however, to the “justifications” for the banks’ reluctance to engage in short sales offered by those in the know, and quoted in the article:
· “Banks are historically reluctant to do short sales, fearing that somehow the homeowner is getting an advantage on them”;
· “{Banks} have this irrational belief that if you foreclose and hold on to the property for six months, somehow prices will rebound;”
· “banks computer systems repeatedly asked for and lost the same information and generated inaccurate responses:”
· “Servicers can reap high fees from foreclosures:”
· In a reversal of previous regulatory policy (changed April 2009), “banks can foreclose on a home and avoid writing down the loan until the home is sold, as opposed to taking the write-down immediately on a short sale;”
Sounds an awful lot like “Let them eat cake” to me.
But it’s hard for even these mercenary heartless bureaucrats to justify this one: A Mr. Nicholas Yannuzzi put 20% down and bought a one-story home for his wife, who had been diagnosed with bone cancer, so she would not have to climb stairs. Sadly, his wife later died, he lost his job and used his retirement funds to pay the mortgage for the past five months. Didn’t make any difference to Wells Fargo Bank, his mortgage holder: they rejected his request for a mortgage modification and then for a short sale.
So, after working diligently all of his life, never having a financial problem before, owning five homes and in the sunset of his life, he is now waiting to be locked out of his home.
Perhaps you may remember the movie “Network,” starring Peter Finch and written by Paddy Chayefsky, that won four Academy Awards, released in 1976 and now rated as one of the top ten films of all time. It was satire, but the protagonist’s mantra was this screaming phrase” “I’m sick and tired and I’m not gonna take it anymore!”
That’s what happens when you ‘let them eat cake’: chaos ensues.
Conclusion: They’re lazy AND it’s the money
Let’s all pretend that if we postpone the write-downs, it will all turn out okay in six months. Let’s all ignore the human toll this crisis is taking and “just follow orders.” Let’s all realize that in this dysfunctional political system we are now in, it’s every man and woman for themselves. Fee income considerations and the timing of balance sheet losses are now trumping the need to treat people fairly. It’s easier to “just follow procedure” than invent solutions.
The wealthiest man in India has built a new estate that sets the bar for opulence and ostentation. Mukesh Ambani’s $1 billion home in Mumbai, named “Antilia” after a mythical island, requires a staff of 600 to man its gym, dance studio, ballroom, guest rooms, movie theater, lounges, garden, 160-car parking lot, and three helicopter pads, the Telegraph reports. All that in only 27 stories. Ambani is chairman of Reliance Industries, a conglomerate with oil, retail, and biomedical divisions. He’s the fourth richest man in the world.
Antilia Mukesh is the largest home in the world. Antilla is situated on a 4,532 square metres (48,780 sq ft) plot at Altamount Road on the famed Cumballa Hill South Mumbai, India, where land prices are upward of US$10,000 per square meter. It has been reported in the media to have cost between US$1 billion and $2 billion, making Antilia the most expensive residential building in the world. Reliance, however, said it cost U$50-70 million.
Some home buyers who may be concerned about paying high closing costs might be tempted by a “zero-cost” or “no-cost” loan option, which requires no cash outlay, but typically adds a half percentage point to the rate. However, some financial consultants say these loans tend to be most beneficial to buyers planning to have the loan for less than five years.
One of the primary differences between a no-cost loan and similar loans is that no-cost loans do not tack on closing costs to the balance, but instead increase the rate.
With no-cost loans, third-party fees including the appraisal, credit report, title insurance, recording, and the use of a mortgage broker are paid by the lender. The fees, including the amount the broker is being paid, are disclosed on the closing statement.
Home buyers who bypass a broker and work directly with a lender may encounter less transparency, as loan officers are not required to disclose the amount the bank is making on the loan.
Borrowers weighing their loan options are advised to use a mortgage amortization calculator to compare the costs for a conventional loan compared with a no-cost loan. The Federal Reserve provides an amortization calculator on its Web site at www.federalreserve.gov.
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Wells Fargo & Co. said it plans to refile paperwork in 55,000 foreclosure cases after it discovered flaws in foreclosure documents.
The San Francisco-based bank, which is also among the largest providers of residential mortgages in Minnesota, had previously stood by its foreclosure paperwork as other major mortgage lenders came under scrutiny.
Wells Fargo proceeded with foreclosures while rivals including Bank of America Corp. and JPMorgan Chase & Co. delayed theirs.
Wells said it had identified possible problems with a final step in its foreclosure process by bank employees and notaries on legal affidavits.
The bank will begin the filings in 23 states and hopes to complete them by mid-November.
“The issues the company has identified do not relate in any way to the quality of the customer and loan data.” Wells said in a statement. “Nor does the company believe that any of these instances led to foreclosures which should not have otherwise occurred
