Only 3 out of 4 offers accepted ever close escrow…

3 out of 4

You may already know that it’s been a challenging Real Estate market; however you may not know that the most recent statistic according to the National Association of Realtors states that only 3 out of 4 offers accepted ever close escrow.

16% of all buyers change their mind from the time they sign the contract to the time they open escrow. Never before has there been such buyer’s remorse. I believe that this is a direct result of the people they know, like and trust, influencing them based on stories they know or believe to be true. We all know someone that has been affected by our recent shift in the real estate market, and it’s easy for someone to have an opinion on whether or not it may be a good or bad time for someone to purchase a home.

11% of all properties fall out of escrow due to low appraisals. There is no doubt that the market continues to place downward pressure on pricing, and the fact that we have these appraisal issues supports that fact. A lot of these appraisal issues may be corrected in time… Many of today’s appraisal’s come in low because the contract price that was agreed upon was 3, 4 or even 6 or more months back. Now that the Lender has approved the short sale, value is no longer there. As the lenders continue to become more organized and systematized, they continue to speed up the short sale process. As the short sale process continues to speed up, we should see less of these appraisal problems.

Bottom line… now more than ever, you need to work with a real estate professional that understands the market, has a deep understanding of value, and one that is intimately familiar with what to expect during the process.

Please feel comfortable giving me a call or sending me an email should you have any questions or simply wish to discuss this further.

A New way of Stealing….. Well worth reading.

A friend sent me this article and I was somewhat shocked by how easy it is for your credit cards to be compromised.
Be sure to read Scene 3.

SCENE 1.
A friend went to the local gym and placed his belongings in the locker. After the workout and a shower, he came out, saw the locker open, and thought to himself, Funny, I thought I locked the locker. He dressed and just flipped the wallet to make sure all was in order. Everything looked okay – all cards were in place… A few weeks later his credit card bill came – a whooping bill of £14,000! He called the credit card company and started yelling at them, saying that he did not make the transactions.

Customer care personnel verified that there was no Mistake in the system and asked if his card had been stolen. ‘No,’ he said, but then took out his wallet, pulled out the credit card, and you guessed it – a switch had been made. An expired similar credit card from the same bank was in the wallet. The thief broke into his locker at the gym and switched cards.

Verdict: The credit card issuer said since he did not report the card missing earlier, he would have to pay the amount owed to them. How much did he have to pay for items he did not buy? £9,000! Why were there no calls made to verify the amount swiped? Small amounts rarely trigger a ‘warning bell’ with some credit card companies. It just so happens that all the small amounts added up to big one!
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SCENE 2.
A man at a local restaurant paid for his meal with his credit card. The bill for the meal came, he signed it and the waitress folded the receipt and passed the credit card along. Usually, he would just take it and place it in his wallet or pocket. Funny enough, though, he actually took a look at the card and, lo and behold, it was the expired card of another person. He called the waitress and she looked perplexed. She took it back, apologized, and hurried back to the counter under the watchful eye of the man. All the waitress did while walking to the counter was wave the wrong expired card to the counter cashier, and the counter cashier immediately looked down and took out the real card.

No exchange of words — nothing! She took it and came back to the man with an apology.

Verdict:
Make sure the credit cards in your wallet are yours. Check the name on the card every time you sign for something and/or the card is taken away for even a short period of time. Many people just take back the credit card without even looking at it, ‘assuming’ that it has to be theirs.

FOR YOUR OWN SAKE, DEVELOP THE HABIT OF CHECKING YOUR CREDIT CARD EACH TIME IT IS RETURNED TO YOU AFTER A TRANSACTION!
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SCENE 3:
A few days ago, she went into a pizza restaurant to pick up an order that I had called in. She paid by using my Visa Check Card which, of course, is linked directly to her checking
account.

The young man behind the counter took her card, swiped it, then laid it on the counter as he waited for the approval, which is pretty standard procedure. While he waited, he picked up his cell phone and started dialing. She noticed the phone because it is the same model that she had, but nothing seemed out of the ordinary? Then I heard a click that sounded like my phone sounds when she takes a picture. He then gave me back my card but kept the phone in his hand as if he was still pressing buttons.

Meanwhile, She’s thinking: I wonder what he is taking a picture of, oblivious to what was really going on. It then dawned on her: the only thing there was my credit card, so now I’m paying close attention to what he is doing… He set his phone on the counter, leaving it open. About five seconds later, she heard the chime that tells you that the picture has been saved. Now she’s standing there struggling with the fact that this boy just took a picture of my credit card. Yes, he played it off well, because had we not had the same kind of phone, I probably would never have known what happened. Needless to say, she immediately cancelled that card as she was walking out of the pizza parlor.

Whenever you are using your credit card take caution and don’t be careless. Notice who is standing near you and what they are doing when you use your card. Be aware of phones, because many have a camera phone these days.

FORWARD THIS TO AS MANY PEOPLE AS YOU CAN THINK OF. LET’S GET THE WORD OUT ESPECIALLY DURING THIS BUSY HOLIDAY SEASON!

Yours in service…

21 Francheshi Place – Aliso Viejo

Exterior front

Please take a minute to view this lovely home in the heart of Aliso Viejo, nestled behind the gates of Talavera.

www.21Francheshiplace.com

Francheshi Place is an extraordinary 3 bedroom, 2.5 bathroom detached condo nestled in the heart of Aliso Viejo in the highly sought after gated community of “Talavera”. This free flowing floor-plan offers approximately 1642 comfortable sq. ft. with a great living room, formal dining room, and a super cute kitchen in addition to a direct access 2 car garage, and a very cute rear yard. This lovely home is nicely appointed with upgrades which include modern white appliances and a built in microwave, there is upgraded ceramic tile flooring throughout the downstairs, custom paint through out, updated ceiling fans, recessed lighting, raised panel doors, 2” window blinds, the master suite has a separate tub and shower with his and her vanities, and so much more… The grounds offer some beautiful landscape and hardscape. You will truly love living the lifestyle of this great community.

What to Expect from the Revised HARP!

harp 2.0

Revisions to the Home Affordable Refinance Program (HARP) announced last month, are by no means a game changer. HARP 2.0, as the media has started to refer to it, has some merit, but its scope is very limited and it will have little or no impact on foreclosures or the estimated 6.4 million homeowners nationwide who are behind on their mortgage payments. The new HARP essentially expands the net of underwater borrowers who were eligible to refinance under the original version.

HARP was created in 2009 to enable borrowers whose loans were backed by Fannie Mae, Freddie Mac or the FHA; who were current on their mortgage; and who owed up to 125 percent of the current value of their homes to refinance.

Under the new plan, borrowers can refinance no matter how far underwater they are. Banks will only have to verify that they have made their last six payments, haven’t missed more than one payment over the past year, and have a job or another source of regular income.

While the new HARP won’t help homeowners who are behind on their payments and at risk for foreclosure, it will be a welcome relief for homeowners who have been caught in the Catch-22 of not being able to refinance because they owe more on their mortgage than their home is worth, but at the same time, don’t qualify for a short sale or a loan mod because they are current on their payments and still have income and assets.

More Changes for the underwater borrower!!!

HARP Refinance Program Expanded

Borrowers who are current on their home loans may be able to refinance for lower interest rates, even if they are seriously upside down. The Federal Housing Finance Agency (FHFA) announced today that it will broaden the scope of the Home Affordable Refinance Program (HARP) by removing the current 125 percent loan-to-value cap for fixed-rate mortgages backed by Fannie Mae and Freddie Mac. Other program enhancements include, among other things, reducing certain fees, eliminating the need for a new property appraisal if the FHFA has a reliable automated valuation model (AVM) estimate, and extending HARP until the end of 2013. New federal guidelines for the HARP changes should be released to mortgage lenders and servicers by November 15.

The basic eligibility requirements for an enhanced HARP loan are as follows:
Existing mortgage loan must be owned or guaranteed by Fannie Mae or Freddie Mac. To check whether a borrower has a Fannie Mae or Freddie Mac loan, go to http://www.makinghomeaffordable.gov/get-assistance/loan-look-up/Pages/default.aspx.
Existing mortgage loan must have been sold to Fannie Mae or Freddie Mac before June 1, 2009.
Existing mortgage loan cannot have been refinanced under HARP previously (except for Fannie Mae loans refinanced between March and May 2009).
Current loan-to-value (LTV) ratio must be more than 80%.
Existing mortgage loan must be current, with no late payments in the past six months, and no more than one late payment in the past 12 months.

More information is available from FHFA at http://www.fhfa.gov/webfiles/22721/HARP_release_102411_Final.pdf.

Lower your energy cost with…

Roofing Tips

I thought this was some excellent information and I’m hopeful that you or someone you know can benefit from this… enjoy.

Know when to say “NO”!

*THE MOST SUCCESSFUL SHORT SALE LISTING AGENTS IN THIS MARKET ARE THE ONES THAT KNOW HOW/WHEN TO SAY “NO”*

1. DETERMINE IF THE HOMEOWNER CAN/WANTS TO STAY IN THE HOME.
With the push for lender’s to keep people in their homes, a loan modification is a possibility and your homeowner needs to know about it. Be knowledgeable and be able to explain to them their options. For example, if a homeowner has not made a payment in 12 months, know how to calculate the payment to determine whether or not they can afford the terms of a modification. Review the statement with the homeowner and determine the following:

Add the current mortgage balance + missed payments + penalties
Amortize the balance at 2% over 30 years
Add in the taxes, insurance and/or HOA
Determine if they can afford it and that it is not greater than 34% of their gross income

2. REVIEW ALL THE MORTGAGE STATEMENTS WITH THE HOMEOWNERS

3. PULL A PRELIMINARY TITLE REPORT AND CHECK FOR ALL LIENS

If a client determines the best option for them is a short sale, help them understand the process, discuss the scenarios, explain what may or may not happen with the buyer, with the appraisal, and with the lender/negotiator. The best chance of a successful short sale starts with an educated, understanding and cooperative client.

If they choose not to cooperate, or they just want to stay in their home, help them find comfort in that decision, and educate them on what to expect. You never know if they will change their mind and call you later.

If you or someone you know needs the help of a skilled short sale consultant, like me, feel good knowing that I’m here to help you. Simply give me a call or send me an email…

INSIGHT AND THOUGHT PROVIDED BY SCOTT CHAPLIN, BANK OF AMERICA

Opportunities in your improvements… read on

TIP234

An inspector passed this along to me and I thought it may be worth sharing… check it out and let me know your thoughts.

Any questions on what the right improvements in your home may be… simply give me a call and I will happily meet with you, make some cost saving suggestions, and introduce you to the professionals that can get it done right, and a great value to you. Talk to you soon…

Have you heard about SB458?

Help Button

This is some major news…

In a major victory for REALTORS®, Governor Brown signed into law today a C.A.R.-sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder. Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.

Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale. A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.
Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.

Now the real question is, how will the second lien holders negotiate towards a settlement? You should expect that they will increase their demands to close and make the negotiating process that much more challenging. Your thoughts?

Be Careful….

There is a new scam taking place with Mortgage Servicing Companies…

Please let me know your thought by sending me an email or leaving a comment below. Thank you!