Foreclosure Relief Bill Might Bring Help to San Joaquin Valley

$4B program expected to win Senate approval

By MICHAEL DOYLE
BEE WASHINGTON BUREAU

WASHINGTON -- The House on Wednesday approved a controversial housing bill that supporters say could offer some relief for the San Joaquin Valley's foreclosure crisis.

California and valley agencies, for instance, could purchase some of the region's myriad foreclosed and abandoned homes with the help of a new $4 billion grant program.

"This is just a stopgap," said Rep. Dennis Cardoza, D-Merced, "but it's the best we can do today."

Cardoza joined other lawmakers in contributing provisions to the forbiddingly technical, 694-page bill that has bounced around Capitol Hill for about a year. President Bush this week dropped his earlier veto threats, giving a green light for final approval.

The bill was approved 272-152. The Senate is expected to pass the bill Friday or Saturday.

The new federal program follows an announcement Monday by Gov. Schwarzenegger that a state program has been established to boost the valley's economy by helping first-time buyers purchase foreclosed houses in Stanislaus, San Joaquin and Merced counties at discount prices and with reduced-rate loans.

That state initiative, called the Community Stabilization Home Loan Program, is expected to help 800 to 1,000 families purchase vacant bank-owned properties. Nearly 100 homes in the Northern San Joaquin Valley are eligible, and more are expected to be added each week.

Schwarzenegger said the $200 million program will "pump up" the region's economy by boosting real estate sales and reducing the number of foreclosures on the market, which has been reeling from escalating foreclosures and declining values.

A big part of the federal bill props up Fannie Mae and Freddie Mac, the giant government-sponsored mortgage finance companies that together own or guarantee half of the nation's mortgage debt.

The $4 billion grant program would enable state and local housing agencies to "purchase and redevelop" abandoned and foreclosed homes within 18 months. The government agencies could buy the properties at a discount and then choose to sell, rent or demolish the homes.

Lawmakers declare that the grants should target "areas hit hardest by foreclosures." This will be determined by a formula that includes the number of foreclosures, the extent of subprime lending and other factors set by the Department of Housing and Urban Development.

The word "California" does not appear anywhere in the Housing and Economic Recovery Act of 2008. Nonetheless, the state in general and the San Joaquin Valley in particular could get a fair-sized chunk of the money.

More than 17,000 Northern San Joaquin Valley homes have been lost to foreclosure during the past year, according to data released Tuesday.

The number of homes repossessed by lenders continues to skyrocket in Stanislaus, San Joaquin and Merced counties, according to DataQuick Information Systems.

This April, May and June, for instance, 2,207 homes were foreclosed on in Stanislaus, pushing the county's one-year total to 5,554. California lost 63,031 homes to foreclosure this spring and 166,087 during the past year.

San Joaquin and Merced counties have the highest foreclosure rates in the United States. In San Joaquin, 3,185 homeowners lost their property to foreclosure this spring, pushing its one-year total to 8,366. In Merced, 1,223 homes were foreclosed this spring, pushing its one-year total to 3,174.

The foreclosure problems in the valley aren't likely to end soon, because a record number of "notices of default" were filed in almost all of California counties this spring, including Stanislaus, San Joaquin and Merced. Notices of default are the first step in the foreclosure process.

"We want to keep as many people in their houses as we can," said Democratic Rep. Jerry McNerney of Pleasanton, whose district includes part of San Joaquin County. "This is a bill that really does help people."

McNerney wrote a provision that boosts loan limits for veterans.

Cardoza, McNerney and Rep. Dan Lungren, R-Gold River, voted for the bill. Rep. George Radanovich, R-Mariposa, voted no.

First-time buyers would get a $7,500 refundable tax credit under the bill. Proponents say this could help more people buy the valley's foreclosed houses.

The bill provides $180 million for financial counseling and legal assistance to help current homeowners. The bill targets some of this money for the 100 U.S. metropolitan areas with the "highest home foreclosure rates," which will guarantee funding for the valley.

To search for Central Valley homes go to www.CentralValleyHome.com

First-time buyers will need to be pre-approved by one or more lenders.

Don't be surprised if the bank that owns the home requires that you finance your purchase with them.

 Expect competition.  Many buyers bid on multiple properties.

 Banks won't accept offorers that are contingent on selling your home.

 The best deals generally are those homes with the longest time on the market.

 Bank-owned homes typically sell for 10 to 20 percent less than their listing price.

 Be sure to pay for an inspection and consider the cost of repairs or damaged or missing appliances when bidding on a foreclosure.

 The bank is likely to make a counter-offer.  Be sure to consider this when submitting your first offer.

Some banks will not accept an offer unless it is submitted by a REALTOR®.

Banks generally are looking to close quickly, within two weeks to 45 days.

Thank you,
Annie Tatarian
www.CentralValleyHomeSearches.com

Deciding to buy a home is a big step in anyone's life. For first-time home buyers in particular, the financial commitment of a mortgage can be daunting. Why pay all that money up front when you can simply go on renting? The answer, of course, depends on many different factors. But there are several good reasons that everyone should consider.

1. The chance to build equity.
   Aside from having a roof over your head, the ability to build equity is one of the most valuable aspects of home ownership. Each monthly mortgage payment you make helps you to build equity and brings you closer to owning your home outright. Home improvements that increase the value of your property may also add to your equity. And, if property values in your area rise, your equity will, too.

   2. Possible appreciation.
   Most large purchases, like cars, boats or electronics, go down in value as they age. Conversely, a home usually increases in value over the years, especially if it's been well maintained. And if your home's value has increased substantially by the time you're ready to move, you may be able to profit from its higher resale price.

   3. Preferential credit options.
   Once you build up equity in your home, you can benefit from a new avenue of borrowing through home equity loans and lines of credit, and cash-out refinancing. Home equity loans -- loans that are leveraged against the value of your house -- are usually offered at a lower interest rate than conventional loans because, with the house as collateral, they represent a lower risk to the lender.

   If you manage these credit sources wisely, they can become a valuable source of income for major purchases such as a new car, vacation property, home renovations or emergency funds to use in the event of such things as a job loss or unforeseen medical expenses.

   However, because a home equity loan is secured with your house, it's important to never borrow more than you can comfortably afford to pay back. Otherwise, if you miss your payments, the lender could end up taking possession of your home.

   4. Beneficial tax breaks
   Home ownership does require you to pay some extra fees, such as property taxes and interest on your mortgage balance. But fortunately, both of these expenses are usually tax deductible.

   Borrowing against your home's equity may provide a tax break, too. Home equity loans of up to $100,000 are usually tax deductible. In addition, if you've used your house as a primary residence for two or more years, you can exclude up to $250,000 (or $500,000 if you and your spouse file jointly) in capital gains when you sell the property. (Check with your financial advisor for advice on your personal tax situation.)

   5. Personal control
   As a homeowner you can often exercise greater control over your housing costs than renters. For example, you may choose to lower your monthly utility bills by reducing your energy consumption. This may not be possible as a renter if utility charges are bound up in your rental payment. Also, when you own your own home, you have more freedom to renovate as you choose without worrying about restrictions set out in a tenancy agreement. Plus, any upgrades you make may eventually pay off by increasing the resale value of your home.

   6. Pride of Ownership
   Finally, home ownership has plenty of non-financial benefits, too. When you own a home, it's yours; you can do what you want with it in terms of decorating, gardening or renovating.

   Remember, you not only own the house, but the land it sits on. There are few things as empowering as knowing that there's a piece of the world out there that belongs to you; a place you can truly call home.

   Ready to take the plunge into home ownerships

Search for homes at www.centralvalleyhomesearches.com

A Statement on Homeownership Month from Brian Montgomery, the Federal Housing Commissioner

The Federal Housing Administration was created during the Great Depression to provide liquidity to the financial market while promoting homeownership. The FHA of 1934 was the leader in the industry, providing innovative programs during a time of great financial hardship that strengthened our communities and families. Over the last 74 years, the FHA has enabled over 34 million families to become homeowners, providing a safe and secure environment for children to learn and grow and the means for families to grow wealth. In today's uncertain housing market many families are once again turning to the FHA. In fact, more than 200,000 families have refinanced their mortgage through the FHASecure program, an innovative program that enables families with non-FHA insured loans to refinance from expensive, exotic mortgages into a safe and secure FHA loan.

At FHA we are not just concerned with getting families in a home but keeping them in their home. We are committed to providing a means to a stronger and more secure future. Uncertain economic conditions and instability do not have to result in foreclosure. Foreclosures have alternatives and at FHA we are helping struggling homeowners find alternatives.

Through good times and bad economic times the FHA provides homeowners peace of mind. We not only prepare families to become homeowners through our homebuyer education program, but we also strive to keep them in their home through our premier Loss Mitigation Program. Please join us this month as we work to make homeownership and home retention possible for families throughout America. ]]> http://padeed.wordpress.com/?p=4 Thu, 26 Jun 2008 03:06:27 +0000 deedservice http://padeed.wordpress.com/?p=4 The City of Philadelphia is taking aggressive action to prevent a rise in mortgage foreclosures. In March, City council members passed a resolution instituting a mortgage moratorium. The measure prevented the foreclosure sale of more than 1200 properties in April and May. The goal was to allow homeowners to negotiate new terms with their lenders. The moratorium is now up and all properties that have not been stayed are scheduled for a July 1 foreclosure auction. Although there are still several properties up for sale. Mayor, Michael Nutter has created a aggressive plan to assist Philadelphians keep their homes. READ MORE

For one year, the Federal Housing Administration (FHA) will insure foreclosed properties marketed and sold by property disposition firms on behalf of lenders. The properties, which must purchased by owner-occupants, will no longer be subject to the customary 90-day waiting period.

"A glut of foreclosed and abandoned homes harms neighborhoods, frustrates homebuyers and delays a community's recovery," said Brian D. Montgomery, Assistant Secretary of Housing-Federal Housing Commissioner. "The action we take today will allow homebuyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes in neighborhoods across the country."

FHA's new temporary policy will help stabilize neighborhoods experiencing high rates of foreclosure by reducing the inventory of unsold properties. Many foreclosed properties remain vacant for months, inviting vandalism and reducing values of surrounding homes. To address that sizeable inventory, lenders have hired companies that specialize in the marketing and disposition of foreclosed homes. It's reasonable and appropriate that these firms have the ability to sell the properties to borrowers using FHA financing.

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This prohibition is intended to prevent property "flipping," a predatory practice that strips a home of its equity before being quickly resold at an inflated price to an unsuspecting buyer. FHA's new policy will permit the immediate sale of foreclosed properties to legitimate borrowers wishing to use FHA-insured financing.

B:  Well, I've seen and heard in the news that we have a record number of foreclosures.  I figure I can pick up a  deal, maybe I can get a home for way under what it's worth.  If the bank wants to sell it bad enough, they will practically give it away.

C:  Hmmm.  Have you done any research into what it takes to buy a bank-owned property?

B:  No.  How hard can it be.  All I have to do is find one and make an offer, right?

C:  Not exactly.  Do you have your financing in order?

B:  No.  I'll do that when I find a house that I want.

C:  Before a bank will even accept an offer on a foreclosed home, a letter of qualification from a lender or proof of funds (when paying cash) must accompany your offer.  And, in many situations, there are multiple offers made on a home before one is accepted.

B:  Oh, I didn't know that.  Well, I can at least shop around and see a few houses before I move on one.

C:  The very best deals on foreclosures don't last long.  If the house is a real bargain, in a hot area, you can bet it will be scarffed up.  Not only are there prospective homeowners on the prowl, but a ton of investors on are the lookout as well.  When the home prices are low, investors recognize the importance of buying now.  If you find a home you like, you have to be ready to jump on it.

B:  But I hear every day about the number of foreclosures increasing.

C:  There are more homes on the market, but the homes that sit on the market for a length of time usually need a lot of work.  Foreclosed homes are sold "as is."  Do you have some extra cash to make necessary repairs once you buy the home?

B:  Not really.  I'd rather find a home that doesn't need a lot of work.  I'm also looking for a "no money down" type of loan.

C:  Those homes are out there.  But keep in mind, the bank that now owns the home calls all the shots.  It some instances they require you get another prequalification through their preferred lender.  They may or may not allow you to roll in closing costs.  If they do allow it, they may only allow some to be rolled in, and not others.   The bank can also take 3 - 7 days to get back to you once you make an offer.

 B:  There's a lot more to this than I realized.

C:  Let's talk more about what you're looking for in the home, where you want to live, and get you prequalified.  Then, we will be able to find what direction make sense...

I have these types of conversations every week.  At http://www.northtexashomefinders.com you will find brand new homes that have been discounted in price.  After my clients have seen a few foreclosures, they quite often are ready to go back and look at new homes.  If you're particularly handy when it comes to home repair, you may enjoy working on a foreclosed home.  If you're like me - not very handy - you want to buy something that is move-in ready.  We stand ready to help you either way.  I just like my clients to know what they're getting themselves into before getting started.

 Posted by Chad Underwood

Chad@NorthTexasHomeFinders.com

In Brevard County Florida Real Estate there are currently 359 bank owned homes for sale through the Multiple Listing Service. The good news is that 148 foreclosed homes have contracts to purchase on them and 240 bank owned properties have sold since the beginning of 2008. These homes appear to be selling fairly quickly. Does this mean that the banks are becoming more realistic in their pricing to get these properties off of their books? And are buyers getting a good deal on these properties?

At this same time last year there were less than 80 bank owned homes for sale through the MLS in Brevard.

You can view the addendum by clicking the following link:

fannie-mae-addendum-blank

*Historical fiction- People love filthy gossip, especially about celebrities. Historical fiction allows writers to publish things that may not necessarily be entirely accurate about the past. My idea? I write steamy, out and out lies about famous historical figures. Who knew Eli Whitney was a child pornographer?  The Boston Massacre began when Crispus Attucks was secretly killed by John Adams in a double murder/suicide after a sexual tryst gone wrong, you say? When will the public be privy to the real story of the Unabomber, who acted out of lust for the ghost of John Maynard Keynes?

These texts will be used to teach a course in "fake history" at some liberal arts college. Students will register for the class fully aware that everything they learn will be grossly untrue. They will be tested on the material, which will be made up daily as the course progresses, often consisting of glaring logic flaws and inconsistencies in timelines. We will make a million dollars.

*"Gaydar" phone sex line- Alright, so follow me here for a minute. The Internet has kind of killed the market for phone sex, but there is one service that would be difficult to replicate online- our phone sex line that will help determine whether or not you might be gay, for like $5 a minute. See, the premise works like this: "I'm not gay, you're not gay, but I'm going to pretend to be gay for a few minutes and you'll see how you feel at the end of it. Now, if you're not into, chances are you're probably not gay...so for $20, you know pretty much for sure. If you are into it, that's cool, no big deal. We will then provide a referral service to some hotlines, websites, and dating services that might suit your preferences. So now for $20, you can ease your way into things safely and without prejudice." We will make a million dollars.

*New McDonald's characters- McDonaldland has been pretty stagnant over the last however many decades...in order to keep up with the times, I propose we establish some new, possibly "hipper", characters to show the public that Ronald McDonald isn't some shut-in who is incapable of making new friends. First up, is Meg McMuffin. Look- Meg McMuffin is hot, no doubt about it. She has giant English Muffin for a body accent with subtle hints of egg and cheese. No bacon or ham because she's sort of a lazy animal activist and vegetarian. Meg has a British accent, for obvious reasons. Nick Griddle is a rather portly young man who found his way into Ronald's posse, mostly as security for the more important characters. His waffle-y muscles are bulging with maple syrup; unfortunately so is his sausage gut. Being young and impressionable, he had decided to get a giant "M" tatooed on his forehead, kind of typecasting him into being either part of the Micky D's entourage or the University of Minnesota's new logo. Fortunately for us, he chose the former. Lastly, we meet Dr. Finneus "McRib" McRibowitz. His tale is a sad story, filled with strong will and determination. The nickname "McRib", coincidentally derived from his last name, is more a testament to his condition upon arrival to McDonaldland. The Hamburglar described his appearance as "little more than...skin and ribs", this before his harrowing story had been told. With regret, we must reveal that Dr. McRibowitz is a survivor from Dachau, where he served in the labor camp for several years. He represents not only the importance in remembering the past (hence the significance of the McRib sandwich reappearing every few years), but also that the pork found in the sandwich, while being boneless, was originally attached to a living, breathing animal's ribcage. Some things to reflect on.

So why are all the characters' names plays on words? Because people love puns- McDonald's is presumably run by people, who will consequently love puns. They will purchase these ideas, post-haste. We will make a million dollars.