Short Sale Negotiator Agent helps homeowners

Does Fannie or Freddie Own Your Loan?

Wed, 08 Feb 2012 07:33:53 GMT

Does Fannie or Freddie Own Your Loan?

If your mortgage is owned by Fannie Mae or Freddie Mac, you may be eligible for a Home Affordable Refinance and take advantage of lower interest rates.

You can find out if Fannie Mae or Freddie Mac owns your loan directly by clicking on the links below.

1-800-7FANNIE (8am to 8pm EST)
www.fanniemae.com/loanlookup

1-800-FREDDIE (8am to 8pm EST)
www.freddiemac.com/mymortgage

Your mortgage company can also tell you who owns your loan.Click here to contact your mortgage company.

After finding out whether your mortgage is owned by Fannie Mae or Freddie Mac, see if you may be eligible for a Home Affordable Refinance by clicking on the links below.

Find out if you may be eligible
Understanding your mortgage statement

Bob Peralta

24 Years as a California licensed Real Estate Broker
A+ reliability rating with the Better Business Bureau
Member of the National Association of Realtors
Member of the California Association of Realtors
Member of the Lodi Association of Realtors
Certfied Short Sale Negotiator Specialist (HAFA)
Certified Distressed Property Expert (CDPE)
Certified Investor Agent Specialist _ (CIAS) designation
Email

Avoid Foreclosure: Know Your Options

Wed, 01 Feb 2012 09:15:51 GMT

Avoid Foreclosure: Know Your Options - Bob Peralta, a California Licensed Real Estate Broker for over 24 Years, helps homeowners and investors avoid foreclosure anywhere in California including Stockton, Lodi, Tracy, Mountain House, Livermore, Pleasanton, etc.

Click here to verify Bob Peralta's A+ Reliability Rating with the Better Business Bureau. Call Bob Peralta @ 209-401-3572 for a free confidential assessment of your particular situation.Bob Peralta

24 Years as a California licensed Real Estate Broker
A+ reliability rating with the Better Business Bureau
Member of the National Association of Realtors
Member of the California Association of Realtors
Member of the Lodi Association of Realtors
Certfied Short Sale Negotiator Specialist (HAFA)
Certified Distressed Property Expert (CDPE)
Certified Investor Agent Specialist _ (CIAS) designation
Email

Appraisal Institute Offers Guidance on Distressed Comparables

Wed, 01 Feb 2012 08:22:17 GMT

Foreclosures Short Sale Comparables

The Appraisal Institute recently released guidelines to instruct its members on how to deal with distressed sales and foreclosures when seeking comparables.

According to the Institute, some homeowners claim appraisers have undervalued their homes by relying on nearby foreclosed homes and distressed sales as comparables to their properties.

In a recent announcement about the new guidance, the Appraisal Institute states that qualified appraisers “know what adjustments to make, if any, when using distressed sales as comparables, for such methods are taught in basic coursework and updated seminar materials available to professional appraisers.”

Regardless, because the issue is “particularly crucial” in the current market where distressed sales are common, the Institute is offering additional guidance.

The new guide instructs appraisers to rely on less recent sales and broaden their geographic parameters when they cannot find an appropriate comparable within the traditional boundaries.

In general, “foreclosures and short sales usually do not meet the conditions outlined in the definition of market value,” the Institute says.

Short sales may involve “atypical seller motivations,” and foreclosed properties may be damaged or deteriorating. However, “appraisers cannot categorically discount foreclosures and short sales as potential comps in the sales comparison approach,” the institute states.

“As is always the case in selecting sales to use as comparables, appraisers must investigate the circumstances of each transaction, including whether atypical motivations were involved, sales concessions were involved, the property was exposed on the market for a typical amount of time, the marketing program was typical, or the property condition was compromised,” the guidelines state.

When using distressed sales as comps, appraisers must assess all aspects of the sale and decide whether it is appropriate to make an adjustment due to uncommon conditions.

Bob Peralta

24 Years as a California licensed Real Estate Broker

click here to verify A+ Reliability Rating with the Better Business Bureau

Member of the National Association of Realtors

Member of the California Association of Realtors

Member of the Lodi Association of Realtors

Certfied Short Sale Negotiator Specialist (HAFA)

Certified Distressed Property Expert (CDPE)

Certified Investor Agent Specialist _ (CIAS) designation

Email

California Foreclosure Process - Stockton Lodi Real Estate Short Sale Specialist

Sat, 17 Dec 2011 09:50:58 GMT

California Foreclosure Process posted by Stockton Lodi Tracy Short Sale Specialist Agent Negotiator Bob Peralta at Grupe Real Estate

Start of foreclosure process. Initial notice recorded after borrower fails to meet the terms of their loan.
CC 2924c.(a)(1)

Sets auction date. Can be recorded 3 months after Notice of Default
CC 2924 c. (b)(1)

Initial auction date can be just 20 days after Notice of Trustees Sale is recorded.
CC 2924 f. (b)(1)

Auctions can postpone for up to one year.
CC 2924 g. (c)(1)

More information on Postponement Reasons

Transfers property to winning bidder. By default this will be the lender if no bid higher than the lender's opening bid is received.
CC 2924 h. (c)

Properties are considered to be in Preforeclosure from the filing of the initial Notice of Default until the property is sold at auction. During this period investors can purchase the home directly from the owner, Realtors can list the home, and Lenders can help them refinance.

Auction properties have had a Notice of Trustee Sale filed setting an auction date, and have not yet been sold or cancelled. Investors can purchase the home at auction; and Realtors® and Lenders can monitor their client's properties, to ensure their listing and loan activities are completed before the auction.

Bank owned properties received no bid at auction, resulting in the bank taking ownership. These properties are commonly referred to by the banks as REO's (Real Estate Owned). Investors can purchase these properties directly from the bank; and Realtors® can solicit the listing, since banks will almost certainly market the property for sale.

Opportunity	Traditional Financing	Subject-To Financing	Title Insurance	Inspections	Eviction Required	Overall Risk
Preforeclosure	Yes	Yes	Yes	Yes	No	Low
Auction	No	No	No	No	Maybe	High
Bank Owned	Yes	No	Yes	Yes	No	Very Low

Start of foreclosure process. Initial notice recorded after borrower fails to meet the terms of their loan.
CC 2924c.(a)(1)

Sets auction date. Can be recorded 3 months after Notice of Default
CC 2924 c. (b)(1)

Initial auction date can be just 20 days after Notice of Trustees Sale is recorded.
CC 2924 f. (b)(1)

Auctions can postpone for up to one year.
CC 2924 g. (c)(1)

More information on Postponement Reasons

Transfers property to winning bidder. By default this will be the lender if no bid higher than the lender's opening bid is received.
CC 2924 h. (c)

Bob Peralta

24 Years as a California licensed Real Estate Broker
A+ reliability rating with the Better Business Bureau
Member of the National Association of Realtors
Member of the California Association of Realtors
Member of the Lodi Association of Realtors
Certfied Short Sale Negotiator Specialist (HAFA)
Certified Distressed Property Expert (CDPE)
Certified Investor Agent Specialist _ (CIAS) designation

Email

Stockton retains dubious No. 1 foreclosure ranking

Thu, 15 Dec 2011 20:07:07 GMT

Stockton retains dubious No. 1 foreclosure ranking - posted by Stockton - Lodi Short Sale Specialist Real Estate Agent Negotiator Broker

Median price falls 8% to $150,000

The Record

For the second month in row, Stockton had the nation’s highest metro foreclosure rate.

One in every 120 housing units was hit with a foreclosure filing during November. Stockton’s level of foreclosures is nearly twice the rate for the state, according to figures released Wednesday by RealtyTrac, which follows foreclosure activity nationwide.

There were 1,913 Stockton properties with a foreclosure filing in November, up 20 percent from the previous month and up 9 percent from November 2010. The increase in Stockton was driven largely by a 65 percent monthover- month increase in scheduled foreclosure auctions.

Distressed-property sales — the combination of foreclosure resales and short sales — continued to make up more than half of California’s resale market, according to DataQuick, which monitors real estate activity nationwide.

In San Joaquin County, 877 new and resale homes and condos were sold last month, up 2 percent from a year earlier, DataQuick said, but the median price dropped 8 percent to $150,000. Of the total sales, 767 were existing homes.

The eight other California cities with foreclosure rates ranking among the top 10 all posted double-digit percentage increases in scheduled foreclosure auctions in November, ranging from a 37 percent month-over-month increase in Modesto to a 100 percent increase in Fresno.

Nationwide, new foreclosure filings last month fell 3 percent from October and were down 14 percent from November 2010. That’s not the trend in California and other states hard hit by the real estate meltdown. According to RealtyTrac co-founder James Saccacio, the respite is not a trend.

“Despite a seasonal slowdown similar to what we’ve seen in each of the past four years, November’s numbers suggest a new set of incoming foreclosure waves, many of which may roll into the market as REOs or short sales sometime early next year,” Saccacio said. The term REOs stands for real estate owned, which are properties that go back to a lender, typically a mortgage company, after an unsuccessful foreclosure auction.

“Scheduled foreclosure auctions reached a nine-month high in November, corresponding to a recent surge in default notices that began back in August,” he added. “Many of the new defaults that started the foreclosure process over the past few months are now being scheduled for public foreclosure auction.”

An estimated 32,669 new and resale houses and condos were sold statewide last month. That was down 4.2 percent from 34,087 in October and up 4.0 percent from 31,403 for November 2010, DataQuick reported Wednesday.

Bob Peralta
24 Years as a California licensed Real Estate Broker
A+ reliability rating with the Better Business Bureau
Member of the National Association of Realtors
Member of the California Association of Realtors
Member of the Lodi Association of Realtors
Certfied Short Sale Negotiator Specialist (HAFA)
Certified Distressed Property Expert (CDPE)
Certified Investor Agent Specialist _ (CIAS) designation
Email

Bank of America - Transitioning From Your House

Wed, 30 Nov 2011 02:15:23 GMT

Bank of America - Transitioning From Your House

Print page

Although you’ll be transitioning out of your house, that does not necessarily mean going through foreclosure. Other solutions are available that may help you avoid eviction from—and the sale or auction of—the house that can occur during foreclosure. We can help you explore your options, as well as provide resources to help guide you through the transition.

Step 1. Understand the ways to avoid foreclosure

Short Sale

In a short sale, you sell your home and settle your mortgage debt for less than the amount you owe.

Generally takes less time to complete than a foreclosure, so your reported delinquency could be shorter
Credit may improve faster
You may be eligible for money to assist in relocation

Speak with a specialist
1.877.447.3994

9am - 5:30pm EST Mon-Fri

Get details

If you are unable to sell your home in a short sale, there's another option.

Deed in Lieu of Foreclosure

With a deed in lieu of foreclosure, you give your property's deed to the bank instead of going through foreclosure. It's often an easier process than a foreclosure, but it will still have a negative impact on your credit.
Learn More »

Track your progress with this checklist »

Step 2. Transitioning from your house

Community Resource Directory

There are thousands of non-profit groups and government agencies across the country ready to assist you with utilities, food and more.

Search by ZIP code

Resource Index

All the resources found in the Home Transition Guide are brought together for easy reference.

View now

Managing Your Budget

Transitioning out of your house means your financial picture will change considerably. Plan for your new situation more effectively.

Plan your budget

Track your progress with this checklist »

Bob Peralta
24 Years as a California licensed Real Estate Broker
A+ reliability rating with the Better Business Bureau
Member of the National Association of Realtors
Member of the California Association of Realtors
Member of the Lodi Association of Realtors
Certfied Short Sale Negotiator Specialist (HAFA)
Certified Distressed Property Expert (CDPE)
Certified Investor Agent Specialist _ (CIAS) designation
Email

Suze Orman - Short Sale Information

Tue, 29 Nov 2011 09:23:30 GMT

Short Sale Information - Suzie Orman

New Tax Rules for Short Sales - Foreclosures

What is and is not a Short Sale?

There are a lot of words being thrown around today that require clarification. These include short sales, pre-foreclosure, foreclosure, sub-prime loans, deficiency judgments and taxes on the debt or deficiency.

The information below defines these terms and explains ways to deal with financial distress through short sales. Also outlined are the real differences between short sales and foreclosures so that homeowners can see the true benefits of a short sale.

A bank-owned house, or Foreclosure, is not a short sale. A seller deciding to lower their price and take less profit is not a short sale. To have a short sale, one of the parties has to be “shorted;” either the seller or the bank, and for the owner to qualify, a number of criteria must be met (see below).

A “short sale” occurs when the homeowner gets an agreement from the mortgage company to accept less than the full balance of the loan at closing. The homeowner closes on the property and the property is “sold short.” This occurs prior to a property entering the foreclosure process.

How Does A Homeowner Qualify for a Short Sale?
There are four criteria a homeowner must meet to qualify for consideration by the lender for a short sale. These are:

There must be a demonstrable financial hardship, e.g., a lost job or material change in the financial situation;
There must be a monthly shortfall;
There must be insolvency, meaning that the owner does not have the money to pay down the mortgage; and
The owner does not have any assets to sell to pay for the shortfall.

What is Considered an Acceptable Hardship to Qualify for a Short Sale?

There must be a hardship that is preventing the owner from being able to pay their mortgage. Examples include:

Loss of job
Business failure
Damage to property
Death of a spouse
Death of family members
Severe illness
Divorce
Mandatory job relocation,
Medical bills
Military service
Payment increase or Mortgage adjustment
Insurance or tax increase
Reduced income
Separation
Too much debt
Incarceration

What is the Insolvency Requirement to Qualify for a Short Sale?

The owner must not be able to pay down their mortgage. To qualify for a short sale, the homeowner must be financially insolvent. This means that they owe more than they have or that they do not have liquid cash or assets that could be used to buy-down their mortgage.

If the owner does have liquid cash or assets they will be expected to use them to pay down their mortgage. There could be a scenario where an owner made a contribution towards the sale of the property and the lender covers the shortfall.

A short sale is not a way to get out of a mortgage. It is a tool for a borrower to use when they truly can’t pay their mortgage.

Short Sales vs. Foreclosure: The Short Sale Option

Short Sales offer the homeowner many more benefits than going through a Foreclosure. In the case of a short sale, the benefits to the homeowner are:

Only late payments on the mortgage show on a credit report and after the sale of the home, the mortgage will be reported as paid or negotiated. This could lower a homeowner’s credit score by as little as 50 points if all other payments have been made. The affect of a short sale can be as brief as 12 to 18 months.
A Short Sale is not reported on a credit history. There is no specific reporting item for ‘short sale.’ The loan is typically reported as ‘paid in full, settled.’
A Short Sale on its own does not challenge most security clearances whereas a foreclosure does.
A Short Sale is not reported on a credit report and is therefore does not present a challenge to employment.
In some successful short sales it is possible to convince the lender to give up the right to pursue a deficiency judgment against the homeowner, (i.e., payment of the shortfall or the difference between what was owed and what the bank received.)
Under the Mortgage Forgiveness Debt Relief Act of 2007, if a deficiency is forgiven or cancelled, the home is a principal residence, and it is worth less than $2 million, the tax on the deficiency will be forgiven. This benefit applies to homes that are the subject of a Short Sale and a Foreclosure.
A homeowner who successfully negotiates and closes a short sale may be eligible for a Fannie Mae backed mortgage after only 2 yrs.
An Investor who successfully negotiates and closes a short sale may be eligible for a Fannie Mae backed investment mortgage after only 2 years.

Short Sales vs. Foreclosure: The Foreclosure Option

In a Foreclosure, homeowners fall behind in their payments and the bank typically repossess the house and sells it. In almost all cases, the bank pursues the homeowner for the deficiency. The only real way out of this type of situation is to file bankruptcy.

The Foreclosure process begins with the homeowner missing a payment. In fact, default on payment of the mortgage is the only way that a property can be subject to the foreclosure process. Once the lender decided to foreclose on the property, they must notify the homeowner that the process has been initiated. This can be done through the service of the document on the homeowner or by publishing the information in a legal journal. The notice tells the homeowner that the property will be put up for bank sale or auction and the date that this will occur.

In the case of a foreclosure, the homeowner:

Is ineligible for a Fannie Mae backed mortgage for a period of 5 years. (For an investor, this period is 7 years).
In any future loan application, the borrower has to disclose if they had a foreclosure in the last 7 years.
Foreclosure affects a homeowners credit score significantly. It can lower the score anywhere from 250 to 300 points and this can last for over 3 years.
Foreclosure remains as a matter of public record on a person’s credit history for 10 or more years.
Foreclosure can cause a person’s security clearance to be taken away and potentially their employment terminated.
Employers have the right to check an employee’s credit history. A foreclosure can be grounds for immediate reassignment or termination.
Employer’s ability to check an employee’s credit history can also affect a person’s ability to get employment.
In most foreclosures, the bank has the right to pursue a deficiency judgment or collection of the difference between what the homeowner owes and what the bank gets as a result of the sale. The one benefit today is that in the past, the shortfall was reported as income on a homeowners taxes, significantly increasing their tax burden. Due to the Mortgage Forgiveness Debt Relief Act, the tax burden is being forgiven for primary residences valued at less than $2 Million.

It is important to understand that if one payment is missed, this does not mean the foreclosure process will begin immediately. Foreclosure is a legal process process the lender must go through in order to take possession of the property. This process takes time and there are options.

Pre-Foreclosure – The Time for Opportunity

Pre-Foreclosure is the period of time between when a home owner has missed their first payment and the final bank sale date. This is the point at which a home owner is in the process but they have not yet lost control of the property. “This time period is critical since the owner can list the property for sale, sign contracts, and do what they can to avoid foreclosure.” (Certified Distressed Property Institute, 2008)

As outlined in the list above, there are numerous important reasons to avoid foreclosure. Don’t lose control of your property, serious affect your credit or adversely affect your employability. Once you know you are in distress, contact a Real Estate professional that is knowledgeable about Short Sales and working with the banks to help you avoid the impacts of foreclosure.

How I Can Help!

Even if you owe more than your home is worth, I can work with you and your mortgage lender to negotiate the sale of your home. This is called a Short Sale and I am experienced in the Short Sale process.

Short Sales

(eff. Jan. 1, 2011)
Discharge of balance of loan indebtedness after a short sale for residential 1-4 real property by holder of a first deed of trust

This new law prohibits a lender holding a first deed of trust (purchase money or refinance) for a dwelling of 1-4 units to demand a deficiency judgment (unpaid balance due on the loan) from the trustor or mortgagor (owner) who sells the dwelling for less than the remaining amount of the indebtedness due at the time of the short sale to which the lender has consented in writing.

However, if the owner commits either fraud with respect to the short sale, or waste with respect to the secured real property, then the lender may seek damages and use existing rights and remedies against the owner or any third party for fraud or waste.

Note that this law doesn't apply if the trustor or mortgagor is a corporation or political sudivision of the state.

Adds Section 580e to the Code of Civil Procedure.

Short Sale v. Judicial Foreclosure
Homeowner (1 to 4 units) Generally Protected Against Deficiency

Type of Loan	After Short Sale	After Judicial Foreclosure*
First Trust Deed	Yes	Yes, if purchase-money and owner-occupied
Second Trust Deed	No	Yes, if purchase-money and owner- occupied
Purchase Money Loan	Yes, if first trust deed	Yes, if owner-occupied
Rate-and-Term Refinance	Yes, if first trust deed	No
Cash-Out Refinance	Yes, if first trust deed	No
Owner-Occupied Home	Yes, if first trust deed	Yes, if purchase money
Nonowner-Occupied Home	Yes, if first trust deed	No

Bob Peralta
24 Years as a California licensed Real Estate Broker
A+ reliability rating with the Better Business Bureau
Member of the National Association of Realtors
Member of the California Association of Realtors
Member of the Lodi Association of Realtors
Certfied Short Sale Negotiator Specialist (HAFA)
Certified Distressed Property Expert (CDPE)
Certified Investor Agent Specialist _ (CIAS) designation
Email

New Ways to Use Less Energy at Home Concrete countertops? Blown fiberglass insulation? The payback may be quicker than you think.

Sat, 26 Nov 2011 21:06:23 GMT

New Ways to Use Less Energy at Home posted by Stockton Lodi Tracy Certified Investor Agent Specialist.

Concrete countertops? Blown fiberglass insulation? The payback may be quicker than you think.

By JIM CARLTON

For new-home buyers, green is the color of money.

More in Environment

The share of homes being built in the U.S. with environmentally friendly features jumped to 16% of single-family starts last year from 2% in 2006, says McGraw-Hill Construction, a market-research firm in New York. Fueling the trend, industry officials say, is a desire to save energy at a time of high fuel costs. Indeed, in a recent survey, 93% of builders named increased energy efficiency as an important green practice—far more than cited any other benefit.

"People understand energy efficiency because it's easy to measure," says Michele Russo, director of green content at McGraw-Hill, a unit of McGraw-Hill Cos. "They get that bill all the time."

Green homes generally cost anywhere from 2% to 10% more than a typical home, depending on the features included, though the difference is shrinking. About 4%, or $14,000, of the cost of a $398,000 home purchased last year by Keith and Rebecca Sorensen was for green features, including a solar water heater and added insulation, says Michael Chandler, who built the three-bedroom residence in Chapel Hill, N.C. But the couple says their energy bill has been cut by two-thirds from their previous home. The roughly $200 a month in savings means the Sorensens' green premium will be paid off in about six years.

"We're kind of tree-huggers, if you want to call us that, but I hate spending a lot of money hurting the environment," says Mr. Sorensen, 38, an accountant.

Many of the latest practices in green building revolve around ways to make homes use less energy. Here's a look at some recent innovations.

Blown Fiberglass Insulation

Blowing fiberglass between walls, rather than installing matted sheets, is a relatively new technique for addressing one of the best ways to improve the efficiency of a home: making sure it's properly insulated.

Johns Manville

Blown fiberglass insulation is more effective than traditional batts

"After all, it doesn't make any sense to outfit a home with all of these great new, highly efficient technologies and then have it in a home that leaks like a sieve," says Michelle Desiderio, director of the green buildings program at the NAHB Research Center, part of the National Association of Home Builders, in Upper Marlboro, Md.

The old standard in walls was fiberglass sheets, or "batts," but they often didn't keep rooms sealed very tightly. That led to a slew of competing products in recent years, such as cellulose, or recycled paper, and polyurethane spray foam, which provide more insulation because they are blown in to fill all the nooks and crannies between walls, Ms. Desiderio says.

The fiberglass industry has fought back with new products that have insulation values rivaling cellulose and spray foam, without the potentially harmful chemicals they may contain. (Officials of those latter two industries say that toxicity is an issue only when the materials are being installed, and that workers are instructed to wear appropriate safety equipment to avoid exposure.) One technique has been to design a system of blowing fiberglass into wall cavities, such as the JM Spider Custom Insulation System from Denver-based Johns-Manville Corp.

Builders who have switched back to fiberglass say that while the blowing technique costs as much as 40% more than using the batts, it's up to 50% cheaper than using spray foam. Cellulose costs about the same as blown-in fiberglass, but unlike the Spider fiberglass it can hold moisture, says Stephen Crouch, a residential market manager for Johns-Manville.

Green-building experts say the higher insulation costs will eventually be offset by the home's overall energy savings, which can vary widely depending on what other green features are included.

Mr. Crouch says Johns-Manville's Spider sales have continued to increase during the housing slowdown.

Cellulose and spray foam have both continued to gain share in the home insulation market, say officials of the two industries. And cellulose has "superior" moisture-handling capabilities, says Daniel Lea, executive director of the Cellulose Insulation Manufacturers Association, in Dayton, Ohio. Mr. Lea adds that cellulose is the "greenest of green" insulation, in part because it has such a high content of recycled materials including newspapers.

Spray foam, meanwhile, has added benefits such as being able to reinforce the structural integrity of a house, says Kurt Riesenberg, executive director of the Spray Polyurethane Foam Alliance in Fairfax, Va.

Heat Pump Water Heaters

Heat pump water heaters have hit the residential market over the past two years as a way to slash bills on electric water heating. Made by companies including General Electric Co. and Rheem Manufacturing Co., the water heaters suck heat out of the air such as in a garage or basement, like a refrigerator running in reverse, and use it to help heat water in a house.

The savings can be significant: In the case of the Rheem HP-50 heat pump water heater, Rheem officials say the average annual operating cost of the device is between $225 and $280, or about half that of standard electric water heaters.

But the heaters aren't cheap. They cost up to $1,500 for a 50-gallon model, or three times as much as a comparable conventional electric water heater and five times as much as natural-gas-powered units (though natural gas isn't available everywhere). To pay back the higher investment would take three to four years, based on the annual savings.

Another issue with the heat pump units is that homeowners could inadvertently end up paying more to heat the home if one is installed in the wrong place. "If you put it in the garage, that's OK, but if you put one in your basement, that will pull heat out of the basement—forcing you to put more heat back in," says Joe Wiehgen, a senior research engineer at the NAHB Research Center. He suggested that wouldn't be as much of an issue in more temperate climes.

Electronic Monitoring

Several companies have come out with home monitoring systems over the past year that let homeowners track their energy use so they can turn off electricity where it isn't needed.

In February, France's Schneider Electric SA introduced the Wiser Energy Management System, which lets homeowners see a computerized display of their power consumption so they can make adjustments, such as shutting down power to unused appliances. Costing about $600 with installation, the Wiser system can take $60, or 20%, off a $300-a-month power bill, meaning a payback period of as little as a year, says Jeff Drees, president of Schneider's U.S. division.

Similarly, Newton, Mass.-based Powerhouse Dynamics Inc. last year introduced the eMonitor, which costs about the same and advertises a comparable payback period. At the Sorensen residence in North Carolina, the builder, Mr. Chandler, says he included an eMonitor system in the home and has agreed to monitor power use for the family.

"It shows you in a graphical format where there are spikes and stuff," says Mr. Sorensen, who shares the home with his wife and their three children.

Concrete Countertops

At least one green building technology costs less right out of the gate: concrete countertops.

Inspired by "Concrete Countertops: Design, Forms and Finishes for the New Kitchen and Bath," a book by designer Fu-Tung Cheng of Berkeley, Calif., builders around the U.S. have taken to making countertops by mixing their own concrete on a home site. The technique is considered both greener and cheaper because the concrete doesn't have to be shipped like the more prevalent granite counters, says Mr. Chandler, who began building them last year.

According to online calculators, it costs around $1,100 to make 50 square feet of concrete countertop, compared with $2,000 for granite.

But the do-it-yourself approach has its drawbacks. "The challenge is getting the right training for your crew," Mr. Chandler says. "You have to know how to reinforce steel in the right way. It's not intuitive."

Mr. Carlton is a staff reporter in The Wall Street Journal's San Francisco bureau. He can be reached at jim.carlton@wsj.com.

Bob Peralta
209-955-5572
your California Certfied Short Sale Negotiator Specialist
Certified Distressed Property Expert
Certified Investor Agent Specialist (CIAS) designation
Email

Mistakes housing investors make posted by Stockton Lodi Tracy Certified Investor Agent Specialist

Sat, 26 Nov 2011 20:58:18 GMT

The Wall Street Journal

Mistakes housing investors make

With traditional investments delivering low returns, some are considering buying rental housing. However, potential investors should do their homework and avoid the following common mistakes.

Making sense of the story

Investing in real estate right now can be profitable, if everything goes as planned. Rents are increasing in many areas, and more properties may be coming on the market.
Last month, the Obama administration asked for proposals on how to convert at least some of Fannie Mae’s and Freddie Mac’s inventories of foreclosed homes into affordable rentals.
Traditionally, investors rented out properties for 1 percent of the purchase price per month. However, according to one property management firm, today, some investors are receiving as much as 2 percent of the purchase price.
While it may be true that in some areas home prices are relatively low, that doesn’t mean the property can be rented out. Homes in deserted subdivisions aren’t any more appealing to renters than they are to buyers. The same is true for less-attractive properties or those in less-desirable school districts.
Prior to purchasing a property, investors should also factor in closing costs of 3 percent to 6 percent, the costs to fix up the place and maintain it, and the holding costs.
Investors become landlords, and as such, need to keep in mind that, just like homeowners, tenants may not always be able to pay rent. Evicting tenants can take several weeks.
It’s also important to remember that owning a rental is not the same as owning a home. An owner may put up with flaws in a home that a renter wouldn’t tolerate. Additionally, many states and communities have strict laws for landlords, even for those who own only one property.

Bob Peralta
209-955-5572
your California Certfied Short Sale Negotiator Specialist
Certified Distressed Property Expert
Certified Investor Agent Specialist (CIAS) designation
Email

The government is changing its Home Affordable Refinance Program (HARP), making it easier for homeowners to refinance their underwater, high-interest mortgages.

Thu, 27 Oct 2011 21:41:29 GMT

Troubled homeowners get a lifeline
The government is changing its Home Affordable Refinance Program (HARP), making it easier for homeowners to refinance their underwater, high-interest mortgages.

Making sense of the story

Although HARP has helped more than 890,000 homeowners nationwide by reducing their monthly mortgage payments, there are still millions of homeowners who are too far underwater to participate.
Under the new rules, homeowners who owe more than 125 percent of the market value of their homes will be allowed to refinance into new loans.
The program also streamlines the refinancing process for homeowners who are current on their mortgage payments and reduces or removes fees that previously hindered them from refinancing.
Fannie Mae and Freddie Mac also will reduce the fees they charged in the past to enable borrowers to better afford the new loans. Among the fees that will be reduced or eliminated are those for appraisals, title insurance, and closing costs.
Fees also will be waived for some underwater borrowers who are refinancing into 20-year or shorter-term loans.
HARP is only open to borrowers who are current on their payments for the past six months with no more than one missed payment in the past 12 months. The loans must have been originally issued before May 31, 2009, and purchased by Fannie Mae or Freddie Mac.

Read the full story

Bob Peralta
209-955-5572
your California Certfied Short Sale Negotiator Specialist
Certified Distressed Property Expert
Certified Investor Agent Specialist (CIAS) designation
Email

The government is changing its Home Affordable Refinance Program (HARP), making it easier for homeowners to refinance their underwater, high-interest mortgages.

Thu, 27 Oct 2011 21:41:28 GMT

Troubled homeowners get a lifeline
The government is changing its Home Affordable Refinance Program (HARP), making it easier for homeowners to refinance their underwater, high-interest mortgages.

Making sense of the story

Although HARP has helped more than 890,000 homeowners nationwide by reducing their monthly mortgage payments, there are still millions of homeowners who are too far underwater to participate.
Under the new rules, homeowners who owe more than 125 percent of the market value of their homes will be allowed to refinance into new loans.
The program also streamlines the refinancing process for homeowners who are current on their mortgage payments and reduces or removes fees that previously hindered them from refinancing.
Fannie Mae and Freddie Mac also will reduce the fees they charged in the past to enable borrowers to better afford the new loans. Among the fees that will be reduced or eliminated are those for appraisals, title insurance, and closing costs.
Fees also will be waived for some underwater borrowers who are refinancing into 20-year or shorter-term loans.
HARP is only open to borrowers who are current on their payments for the past six months with no more than one missed payment in the past 12 months. The loans must have been originally issued before May 31, 2009, and purchased by Fannie Mae or Freddie Mac.

Read the full story

Bob Peralta
209-955-5572
your California Certfied Short Sale Negotiator Specialist
Certified Distressed Property Expert
Certified Investor Agent Specialist (CIAS) designation
Email

Stockton, California - One out of every 52 houses in Stockton was subject to a foreclosure filing in 2011’s third quarte

Sun, 16 Oct 2011 12:22:42 GMT

Stockton, California - One out of every 52 houses in Stockton was subject to a foreclosure filing in 2011’s third quarter.

Stockton Record editorial published on October 16, 2011 - posted by Stockton Real Estate Short Sale Specialist Agent

House of Cards

Our house of cards

One out of every 52 houses in Stockton was subject to a foreclosure filing in 2011’s third quarter

Pick a card, any card. Or pick a house, any house.

The operative number is 52.

There are 52 cards in a deck. And one out of every 52 houses in Stockton was subject to a foreclosure filing in the third quarter of 2011.

It could be the house next door to you. There could be four or five on your block.

They’re sprinkled throughout the city, which has been a fixture on national foreclosure listings for the past several years.

Right now, Stockton ranks No. 3 in the country. Only Las Vegas (one out of every 39 houses) and Vallejo-Fairfield (one out of every 51) have greater frequency rates.

But is all of this continued bad news? Yes and no. It’s certainly not a bragging point for Stockton, but several things should be noted: • Modesto, which doesn’t seem to get tagged with the Scarlet “F” as often as Stockton, is just a tick behind (one out of every 53 houses) while Riverside-San Bernardino, Merced, Bakersfield, Sacramento-Roseville and Fresno all are in the Top 10 nationally. This is not a uniquely Stockton problem.

• While the Stockton metropolitan area — essentially all of San Joaquin County — had a slight increase in filings from the previous quarter, they were down 25 percent from the third quarter of 2010.

• According to Trendgraphix, homes for sale in the county equal a supply of only about three months. Lenders appear to be having more confidence moving forward.

But does that mean, in the words of James Saccacio of RealtyTrac, that lenders are “cautiously throwing more wood into the foreclosure fireplace after spending months trying to clear the chimney of sloppily filed disclosures?”

That could be the case. But despite the economy’s troubles, the housing inventory is there and there is some demand.

So how do we look at this — well — house of cards?

Do we say one out of every 52 houses going through foreclosure? Or does that simply mean 51 out of every 52 houses do not face that stigma?

While it’s important to be confident and upbeat moving forward, the reality is, our foreclosure rate is more than four times the national average (one in 213 houses in foreclosure).

There’s still a lot of existing firewood left for that proverbial chimney.

posted by

Bob Peralta
209-955-5572
California Certfied Short Sale Negotiator Specialist
Certified Distressed Property Expert
Certified Investor Agent Specialist (CIAS) designation
Email

Banks offer up to $35,000 cash for completed short Sales

Thu, 13 Oct 2011 21:09:39 GMT

Banks offer up to $35,000 cash for completed short sales - Lenders won't say why... but they will divulge this: Don't bother seeking out the incentives. If you qualify, they will come find you.

The nation’s largest banks are luring a select number of San Diego County homeowners to complete short sales with the promise of cash, in some cases as much as $35,000 for each deal.

These incentive offers, which require lenders to accept less than what the borrower owes on their mortgage, have surfaced in recent months locally and around the U.S. As straightforward as they seem, they’ve baffled real estate agents and the courted borrowers, many of whom are jobless, behind on mortgage payments, or facing some other financial hardship.

Related: San Diegans take the short-sale gamble

They wonder: Why are the likes of Chase, Bank of America and Wells Fargo aiding homeowners with lump-sum cash offers? And why are certain homeowners chosen and not others?

Lenders won’t say. But they will divulge this: Don’t bother seeking out the incentives. If you qualify, they will come find you.

“It’s not something people can apply for,” Chase spokesman Gary Kishner told the Union-Tribune in a recent phone interview. “We look at case-by-case situations. Even the amount (offered) is case-by-case.”

Chase, the sole bank that provided a specific timeline, said it unrolled its short-sale incentive program late last year. Efforts were ramped up this year and are “now in full swing,” said Kishner, who declined to say how many homeowners received letters.

Bank of America confirmed it’s also offering incentives for completed short sales for “certain borrower profiles,” and Wells Fargo is doing the same, but the cases are “very situational.”

How it works

“Don’t lose hope,” says the letter from Chase to La Jolla resident Cheryl Keenan. “You have options that may help you avoid foreclosure and make a fresh start.”

It goes on to say: “You may be able to owe nothing more on your mortgage and get $35,000 after you sell your home.”

Keenan, who had already received a notice of default, was floored.

“I didn’t believe it,” she said. “It was a generic form letter, nothing to our specific situation or our loan.”

The letters follow a similar structure: You qualify for a new program. If you complete a short sale through this program, you may be eligible for cash to use for moving and other expenses. Once done, you will not be on the hook for future home-loan payments on this home. Call us.

Documents »

Download: Chase incentive marketing letter

Documents »

Download: Short sale incentive letter

In Keenan’s case, she did call. A bank rep asked her to fax in a listing agreement — a contract between a real estate broker and a seller to give the broker the right to offer the home for sale — and a letter authorizing the broker’s negotiator to talk to the bank’s negotiator.

Once that was done, nearly everything that followed was swift and organized — the typical opinion from homeowners and real estate agents. In some cases, the transaction took three months to complete.

In comparison, the typical time frame for a traditional short sale ranges three to four months or as long as a year. For bank-owned properties, the process on average takes five to six months, show recent national numbers from Irvine-based data company RealtyTrac.

“It was upfront, very quick and streamlined,” said Mike Watson, a Chula Vista agent who has helped a client complete a short-sale incentive deal.

Once Keenan, of La Jolla, put her home on the market, she quickly found a potential buyer and expects to close escrow this month.

The cash incentives, varying from a few thousand to as high as $35,000, are given to the sellers at closing. Banks have declined to say how the amounts are determined, but it appears the larger amounts correlate with larger home loans.

“So far, it looks like they’re going to honor it,” Keenan said.

How banks benefit

The major lenders say they’ve launched the incentive programs to reduce losses in their portfolio, also widely known as loss mitigation in the real estate business.

“(They) want to get some of those nonperforming loans off their books,” said Michael Spilger, a San Diego real estate attorney.

The goal is to keep the homes from going into foreclosure, which can be a lengthy process. Nationwide, properties foreclosed in the second quarter were in the foreclosure process an average of 318 days, RealtyTrac reported in its midyear report.

Also, by letting homeowners stay in their homes during the incentivized short-sale process, banks can curb vandalism at the properties, which can be costly to fix and make it difficult to sell.

That worked on Keenan, the homeowner taking part in Chase’s program.

Fearing she won’t get her incentive at closing, she has made sure her property is “well-kept” until the deal is finalized.

“What you’re trying to do is get a borrower or homeowner to move out of the home as efficiently or quickly,” said Guy Cecala, a national real estate expert and publisher of Inside Mortgage Finance.

What’s in it for the borrowers?

For one, they get a chance at the fresh start mentioned in their offer letters. Many of those courted are behind on mortgage payments, out of work, or likely both, and want a way out.

Also, sellers prefer short sales over foreclosures because they typically have less of an impact on credit scores. But the impact depends on how behind they are on home-loan payments and other factors.

Another attractive aspect of the incentive offers is that banks assure they will release homeowners of any deficiency judgments.

Homeowners in California are further protected by a recently retooled state law that bars first and secondary lien holders from going after sellers for money owed after short sales close.

Reach reporter Lily Leung at lily.leung@uniontrib.com or 619-293-1719 . Follow her on Twitter @LilyShumLeung and on Facebook.

Bob Peralta
209-955-5572
your California Certfied Short Sale Negotiator Specialist
Certified Distressed Property Expert
Certified Investor Agent Specialist (CIAS) designation
Email

Short Sale Negotiator Agent helps homeowners

Does Fannie or Freddie Own Your Loan?

You can find out if Fannie Mae or Freddie Mac owns your loan directly by clicking on the links below.

1-800-7FANNIE (8am to 8pm EST) www.fanniemae.com/loanlookup

Bob Peralta

Avoid Foreclosure: Know Your Options

Appraisal Institute Offers Guidance on Distressed Comparables

Foreclosures Short Sale Comparables

24 Years as a California licensed Real Estate Broker click here to verify A+ Reliability Rating with the Better Business Bureau Member of the National Association of Realtors

Member of the California Association of Realtors

Member of the Lodi Association of Realtors

Certfied Short Sale Negotiator Specialist (HAFA)

Certified Distressed Property Expert (CDPE)

Certified Investor Agent Specialist _ (CIAS) designation

California Foreclosure Process - Stockton Lodi Real Estate Short Sale Specialist

California Foreclosure Process posted by Stockton Lodi Tracy Short Sale Specialist Agent Negotiator Bob Peralta at Grupe Real Estate

24 Years as a California licensed Real Estate Broker

A+ reliability rating with the Better Business Bureau

Member of the National Association of Realtors

Member of the California Association of Realtors

Member of the Lodi Association of Realtors

Certfied Short Sale Negotiator Specialist (HAFA)

Certified Distressed Property Expert (CDPE)

Certified Investor Agent Specialist _ (CIAS) designation

Stockton retains dubious No. 1 foreclosure ranking

Stockton retains dubious No. 1 foreclosure ranking - posted by Stockton - Lodi Short Sale Specialist Real Estate Agent Negotiator Broker Median price falls 8% to $150,000

Bank of America - Transitioning From Your House

Bank of America - Transitioning From Your House

Step 1. Understand the ways to avoid foreclosure

Step 2. Transitioning from your house

Community Resource Directory

Resource Index

Managing Your Budget

Suze Orman - Short Sale Information

Short Sale Information - Suzie Orman

New Ways to Use Less Energy at Home Concrete countertops? Blown fiberglass insulation? The payback may be quicker than you think.

New Ways to Use Less Energy at Home posted by Stockton Lodi Tracy Certified Investor Agent Specialist.

Concrete countertops? Blown fiberglass insulation? The payback may be quicker than you think.

By JIM CARLTON

More in Environment

Blown Fiberglass Insulation

Heat Pump Water Heaters

Electronic Monitoring

Concrete Countertops

Mistakes housing investors make posted by Stockton Lodi Tracy Certified Investor Agent Specialist

Mistakes housing investors make

The government is changing its Home Affordable Refinance Program (HARP), making it easier for homeowners to refinance their underwater, high-interest mortgages.

The government is changing its Home Affordable Refinance Program (HARP), making it easier for homeowners to refinance their underwater, high-interest mortgages.

Stockton, California - One out of every 52 houses in Stockton was subject to a foreclosure filing in 2011’s third quarte

Stockton, California - One out of every 52 houses in Stockton was subject to a foreclosure filing in 2011’s third quarter.

Banks offer up to $35,000 cash for completed short Sales

Banks offer up to $35,000 cash for completed short sales - Lenders won't say why... but they will divulge this: Don't bother seeking out the incentives. If you qualify, they will come find you.

How it works

Download: Chase incentive marketing letter

Download: Short sale incentive letter

How banks benefit

What’s in it for the borrowers?

1-800-7FANNIE (8am to 8pm EST)
www.fanniemae.com/loanlookup

24 Years as a California licensed Real Estate Broker

click here to verify A+ Reliability Rating with the Better Business Bureau

Member of the National Association of Realtors

Stockton retains dubious No. 1 foreclosure ranking - posted by Stockton - Lodi Short Sale Specialist Real Estate Agent Negotiator Broker

Median price falls 8% to $150,000