Bill would shield homeowners’ credit ratings
July 21, 2010 by admin · Leave a Comment
(Sfgate.com) Struggling homeowners who get loan modifications to stave off foreclosure often discover that their credit score takes a big hit. A bill introduced on Thursday by U.S. Rep. Jackie Speier, D-Hillsborough, would shield homeowner credit ratings after a loan modification. “To play by the rules, modify your loan and then have it as a blemish on your credit report is just flabbergasting; it adds insult to injury,” said Speier. “The credit system should not punish responsible... [Read more]
April 2010 Nationwide Foreclosure Report
May 25, 2010 by Josh Deknoblough · Leave a Comment
RealtyTrac®, an online marketplace for foreclosure properties, released its U.S. Foreclosure Market Report™ for April 2010, which shows that foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 333,837 properties in April, a 9 percent decrease from the previous month and a 2 percent decrease from April 2009. One in every 387 U.S. housing units received a foreclosure filing during the month. “There were two important milestones in the April... [Read more]
Bank Must Produce The Note?
May 7, 2010 by Bill Parsons · Leave a Comment
Dear Bill Parsons, You asked me to look into the rumors that people who are under water in their homes can get out of their debts, stop foreclosures, and even cancel their home mortgage by going to court. Those rumors are all over the Internet and even in seminars right now and all I can tell you to advise the people who come to you is: Beware of False Hope and Help. Banks Do Not Have to Prove Note in California Foreclosures. People who have received Notices of Default, Notice of Sale or who... [Read more]
California Short Sale & Foreclosure Tax Update
April 9, 2010 by Josh Deknoblough · Leave a Comment
Thursday State lawmakers passed SB 401 which will exempt borrowers who lost their homes to foreclosure or short sales in 2009 from paying state taxes. State officials say as much as 100,000 people statewide will be spared from paying tax they otherwise would owe. The bill extends the state ban from 2009 through the end of 2012. It also bans state taxes on federal stimulus grants for renewable energy projects. The bill still needs to be signed by Gov. Schwarzenegger, however a spokesman for the governor... [Read more]
But Wait…There’s More!
March 23, 2010 by Bill Parsons · 1 Comment
There couldn’t be a better time to walk away from your house! As a refresher, see my blog post from November 5th 2008 regarding the short sale process and the “Cash For Keys” some lenders offer homeowners as an incentive to go away quietly. I’m posting today about another government program that could put some cash in your hands. That is, if you’re facing the foreclosure of your home. The government program I want to tell you about was created to increase the viability of short... [Read more]
New Bill Could Relieve California Homeowners of Paying Forgiven Debt Tax
March 12, 2010 by admin · Leave a Comment
Yesterday the California Senate voted 21-15 to approve legislation that would relieve the tax liability of California homeowners from who have had forgiven debt from a foreclosure or short sale. The bill will make changes to the state’s law to make it more consistent with the federal tax law. The bill is now in front of the governor and if signed it will become immediately effective. It is retroactive to include the 2009 tax year and the exemption on state taxation of forgiven mortgage debt... [Read more]
How Banks Can Profit When You Lose Your Home
February 16, 2010 by Bill Parsons · 3 Comments
As a veteran of processing over 100 short sales in Redding and Shasta County I can tell you; sometimes things just don’t add up. Many times I’ve seen banks turn down offers and later sell the property after foreclosure for less than our original offer. How can this be? It just doesn’t make sense, or does it? I think you too may be shocked at what you are about to see… I’d love to hear your comments on this video! http://www.thinkbigworksmall.com/mypage/archive/1/32275 F.Y. I you... [Read more]
Will Fannie Mae Become Your Landlord? The New Deed For Lease Program
November 6, 2009 by Bill Parsons · 1 Comment
Fannie Mae announced Thursday that it is implementing a program under which qualifying homeowners facing foreclosure will be able to remain in their homes as renters if they voluntary transfer the property deed back to the lender. The GSE’s new Deed for Lease Program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under the program, borrowers transfer their property to the lender by completing a deed in lieu... [Read more]
Fannie & Freddie To Help Renters Of Foreclosed Homes
January 20, 2009 by Josh Deknoblough · Leave a Comment
Freddie Mac & Fannie Mae are preparing a plan that will allow renters who live in bank repossessed properties to stay in their homes. They expect to have the plan completed before their self imposed moratorium on foreclosures expires on January 31st. The plans were revealed in the letter Federal Finance Housing Agency (FHFA) Director James Lockhart sent to Senator Christopher Dodd, chairman of the Committee on Banking, Housing, and Urban Affairs, accompanying the FHFA’s Foreclosure Prevention... [Read more]
Recourse Loan or Nonrecourse Loan?
December 10, 2008 by Josh Deknoblough · Leave a Comment
Knowing whether or not a loan is recourse or nonrecourse debt is critical when borrowers are facing foreclosure. Depending on the type of debt there could be tax consequences for a foreclosure or a short sale. The main difference in a recourse loan and a nonrecourse loan is the liability. With a nonrecourse loan the lenders only way of recovering their loan is the security, in this case the property. With a recourse loan the lender is able to go after the borrowers assets if they do not receive... [Read more]
California Foreclosures Starting To Cool Down?
November 15, 2008 by Josh Deknoblough · Leave a Comment
Foreclosureradar.com released its California Foreclosure Report for October 2008. Notice of default filings were up by 2.8% but dropped 42.3 when compared to this month last year. The statewide findings are very similar to what we found for Shasta County foreclosures. Foreclosure sales dropped by 39.1 percent from the prior month, due to significant increases in cancellations and postponements, the company said. Under California law, scheduled foreclosure sales can be postponed for a period... [Read more]
Governor Schwarzenegger Proposes a 90 Freeze on Foreclosures In California
November 7, 2008 by Josh Deknoblough · Leave a Comment
California Governor Arnold Schwarzenegger unveiled an aggressive proposal yesterday that he says will bring down foreclosure rates in the state by helping both borrowers and lenders modify existing home loans in ways that benefit both parties, and at the heart of his plan is a state-wide 90-day halt on foreclosure proceedings. Earlier today, Schwarzenegger called a special session of the state legislature to immediately address his foreclosure relief plan, as well as other economy and budget issues. “The... [Read more]
Time To Sell, NOW!
November 5, 2008 by Bill Parsons · 2 Comments
My sister asked my opinion of home values in Redding about three years ago. At that time I suggested, “sell your home now and rent before the financial markets crash”. Needless to say, no one in my family followed my advice. The subject has come up again and I just sent my sister an email with my thoughts, see below. Hello Sue and Uncle Tom, Well, actually this is your second chance to sell your home (if you have equity). There will be a window of opportunity between now and when... [Read more]
Bank of America Announces Nationwide Homeownership Retention Program For Countrywide Customers
November 5, 2008 by Josh Deknoblough · Leave a Comment
Nearly 400,000 Countrywide borrowers could benefit after program launches January 1st. CALABASAS, CA – Bank of America today announced the creation of a proactive home retention program that will systematically modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for nearly 400,000 Countrywide Financial Corporation customers nationwide. The program was developed together with state Attorneys General and is designed to achieve affordable... [Read more]
Study’s Show Small Loan Modifications Failing
November 4, 2008 by Josh Deknoblough · Leave a Comment
Interesting article today on DSNews.com. According to a study by Credit Suisse & Moody’s a lot of loan modifications are failing and borrowers are becoming deliquent within 8 months. One third of all subprime loans modified in the third quarter of 2007 were delinquent again within 10 months, according to a Credit Suisse report. A study by Moody’s ratings agency showed similar results. Looking at subprime adjustable-rate mortgages (ARMs) modified in the first half of 2007,... [Read more]
Why the Appraisal Is So Important In Short Sales
November 3, 2008 by Josh Deknoblough · 2 Comments
At some point in your short sale process the bank will want to know what the property is worth. They do this by ordering an appraisal, Broker Price Opinion (BPO) or both. Whether the bank sends out an appraiser or a broker to do a BPO the result of their evaluation will make or break your short sales success. Most banks won’t consider selling the property for less than 85% of the appraised value, some will ask for 90% or above. With that said, it’s critical that the appraisal or BPO comes in... [Read more]
Hope for Homeowners: FHA to Provide Additional Mortgage Assistance to Struggling Homeowners.
October 15, 2008 by Josh Deknoblough · Leave a Comment
The President has signed into law legislation that will allow HUD’s Federal Housing Administration (FHA) to continue providing targeted mortgage assistance to homeowners. The Hope for Homeowners program will continue FHA’s existing and successful efforts to provide aid to struggling families trapped in mortgages they currently cannot afford. Under the program, certain borrowers facing difficulty with their mortgage will be eligible to refinance into FHA-insured mortgages they can... [Read more]
Deed-in-lieu of Foreclosure, How Does It Work?
September 20, 2008 by Josh Deknoblough · Leave a Comment
A Deed-in-lieu of Foreclosure is basically giving the house back to the lender. In most cases this will only work if the borrower does not have a second loan on the property. The reason is, you can only give the property to one lien holder and the other lender would not agree to release the lien unless they were to receive some sort of compensation. There are some advantages for both the lender and the borrower and well as some disadvantages. The benefits to the borrower are you can escape... [Read more]
