Archive for the ‘For Realtors’ Category

Quick Foreclosure Market Update – Must Read

Just thought this would be useful information for you all. This comes from RealtyTrak and Wells Fargo at the AREAA national conference in SF. This session is about the current REO market.

In a nut shell the first wave of foreclosures in 2006-2008 were caused by the subprime loan market. This created the economic down turn, increasing unemployment. Unemployment is what caused the current wave of foreclosure we are seeing now. Adjustable rate loans may be third wave of foreclosures which we will know by spring of 2012.

We are not selling enough homes to move current inventory of foreclosures out there which is keeping home prices down.

Inability to sell new homes(which are always highest in price drive up prices) is also what is keeping prices stagnant.

Quick Foreclosure Market Update - Must Read

There are currently 800,000 foreclosures on banks books with less than 30% actually listed on the market. Another 800k are currently in foreclosure, 1.3mil in severe delinquency. 3.5 mil in some stage of delinquency.

The market in terms of pricing will probably bottom out in 2011, remain low through 2012 and 2013 as we work through selling off the foreclosure through inventory. Possibly a rise in pricing by 2014.

Banks are facing adjustable rate mortgages as being the third wave in foreclosures, however they have many options to work through this by extending loan terms, forgiving principle, etc. They want to work this out as they see these loans as their highest risk factor for delinquency in the future.


NEW LISTING ~ 3 Mirlo, Rancho Santa Margarita, CA

NEW LISTING ~ 3 Mirlo, Rancho Santa Margarita, CA

Affordable 2 bed / 2 bath for only $190,000

Upper Corner Unit – Come See Today before its too late!!


REALTOR� Magazine-Daily News-Geithner: Bailout Costs Should Be Recouped

REALTOR� Magazine-Daily News-Geithner: Bailout Costs Should Be Recouped.

Top 10 Things You Should Know About Financial Reform

RISMEDIA, June 23, 2010—As the United States continues to put plans into action in order to help remedy the country’s financial situation, Americans are waiting optimistically to see the end result of the regulation bill that is moving through both the Senate and House. While the Senate recently approved their version of the big financial regulation bill by a 59-39 vote, the bill has now moved to a conference committee where it will be reconciled with the already passed House bill.

Here are the top 10 things you should know about the Financial Regulations bill.

1. End of too-big-to fail: If a big financial firm is failing, it will have only one fate: liquidation. There will be no taxpayer funded bailout. Instead, regulators will have the ability to shut down and break apart failing financial firms in a safe, orderly way – without putting the rest of the financial system at risk, and without asking taxpayers to pay a dime.

2. Close loopholes in regulation of major financial firms: Loopholes that allowed firms like Lehman Brothers, Bear Stearns and AIG to operate without tough standards or oversight were major contributors to the financial crisis. Regulatory reform will close these loopholes, and create accountable regulation for all firms that pose the most risk to the financial system. It will end the ability of financial firms to avoid tough standards by manipulating their legal structure.

3. Bring transparency to hedge funds: Financial reform will require advisers to hedge funds to register with the SEC for the first time, bringing transparency and oversight to these unregulated financial firms.

4. Constrain the size of the largest firms: Financial reform will prevent any financial firm from growing by acquisition to more than 10% of the liabilities in the financial system. This will reduce the adverse effects of the failure of any single firm and prevent the further concentration of our financial system.

5. Reform executive pay and strengthen shareholder protections: Financial reform will give shareholders a say in the compensation of senior executives at the companies they own, and require that the compensation committees of corporate boards are independent.

Top 10 Things You Should Know about Financial Reform

6. Separate banking and speculative trading – the Volcker Rule: Financial reform will protect taxpayers and depositors by separating risky, speculative “proprietary trading” from the business of banking.

7. Strongest consumer protections ever: Instead of seven federal agencies with only partial responsibilities for consumer protection, there will be one agency with the sole responsibility of establishing clear rules of the road for banks, mortgage companies, payday lenders, credit card lenders and other financial service firms and for enforcing these rules. From now on, every consumer will be empowered with the clear and concise information they need to make financial decisions that are best for them.

8. Crack down on the abuses in the mortgage markets at the center of the crisis: Financial reform will ban abusive practices in the mortgage markets, like those where brokers got paid more to put families into higher priced loans than those they qualified for, and require mortgage brokers and banks to consider a family’s ability to repay when making a loan. The reforms will also require lenders and Wall Street loan packagers to keep skin in the game when selling off loans to investors and make full disclosure so investors know what’s in those packages. Reforms of credit rating agencies will help make sure investors do not rely unwisely on their ratings on these packages.

9. Safer, more transparent derivatives market to help Main Street businesses: By bringing the derivatives markets out of the shadows, reform will benefit those businesses that use derivatives to manage their commercial risks. Reform will benefit Main Street companies at the expense of Wall Street’s hidden fees. That’s good for every farmer and every manufacturer that uses derivatives the way they were meant to be used. Derivatives reform also means the taxpayer won’t be on the hook for reckless risks of an AIG.

10. Support long term job growth by helping prevent future crises: By making the financial system safer and stronger, reform will reduce the chances that a financial crisis deprives businesses of the credit they need to grow and to create jobs. Financial reform will ensure businesses a more stable and predictable source of credit through the business cycle and reduce the risk of a sharp and sudden cut-off because of financial panic.

For more information, visit

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SOLD! 18322 Fieldbury Lane, Huntington Beach, Ca BOLSA LANDMARK

SOLD! 18322 Fieldbury Lane,

Huntington Beach, Ca




CALL LINDA GINEX…because the right REALTOR, makes a difference.


Financials on Short Sales Vs. REO’s

FINANCIALS ON SHORT SALE VS. REO’s: Lenders loss severities for properties sold through a short sale are 13-26% lower vs. loss severities for REO sales. In Addition, data shows that short sales cost bondholders about 1/2 the amount in fees and advances as REO sales, saving roughly $16,000 per sale.



CLICK HERE to download PDF of March Foreclosure Report for CA.

As always, Contact Linda Ginex For Any Real Estate Related Needs or Questions.

California Waives State Taxes on Forgiven Mortgage Debt

Californian waives state taxes on forgiven mortgage debt for those who have sold their homes as short sales are allowed to exclude from taxable income the amount that was still owed to the mortgage company. The legislation also applies to homeowners who have received debt-reducing loan modifications.

The new law allows most taxpayers to exclude canceled mortgage debt income of up to $500,000 on their principal residence, or up to $250,000 for married individuals filing separately. It applies to debt forgiveness in 2009 through 2012.  The law excludes second homes, business and investment property.

The law brings California state tax policy largely in line with the federal Mortgage Forgiveness Debt Relief Act of 2007, which is in effect through the tax year 2012.

Excerpt taken from DS News by Carrie Bay

BofA Completes More Than 12,000 Permanent HAMP Mods in a Month

According to Bank of America’s monthly Home Affordable Modification Program (HAMP) progress report to the Department of Treasury, the Charlotte, North Carolina-based bank has completed nearly 33,000 permanent HAMP modifications, including more than 12,000 since the previous monthly report.

As of April 8, 2010, 32,900 Bank of America customers had been placed into completed mortgage modifications with affordable payments under HAMP, up from 20,666 reported a month earlier. This marked the bank’s most productive month to date.

“We anticipated the momentum of completion of HAMP modifications would build as we entered spring, and we’re seeing that,” said Jack Schakett, loss mitigation strategies executive for Bank of America. “As more homeowners have completed their required trial payment period and provided the information necessary for underwriting, an increasing number of Bank of America customers are receiving long-term assistance through the government initiative and the efforts of our associates.”

In addition to its progress in HAMP, the bank has also stepped up its participation efforts in other facets of the government’s broad Making Home Affordable initiative. In January, Bank of America was the first servicer to sign an agreement to participate in the HAMP second lien modification program, and on April 1, the bank became the first major servicer to begin extending 2MP modification offers to homeowners with completed first lien modification under HAMP.

Bank of America also said it is currently implementing the Home Affordable Foreclosure Alternatives program to

streamline short sales for eligible homeowners who cannot complete a HAMP modification. In addition, the bank has refinanced more than 190,000 mortgages under the Home Affordable Refinance Program to benefit homeowners, including more than 100,000 loans with loan-to-value ratios exceeding 80 percent, which makes them difficult to finance outside of government-supported programs in today’s tight credit market.

While Making Home Affordable is at the center of Bank of America’s homeownership retention efforts today, the bank has completed another 535,000 modification outside of HAMP through proprietary programs since January 2008. And last month, Bank of America announced enhancements to its National Homeownership Retention Program unveiled in October 2008 to assist certain former customers of Countrywide who have types of loans that have proven to be at the greatest risk of default.

Excerpt taken from DS News written by Brittany Dunn

Study: Number of U.S. Households Falls by 1.2 Million

By Amy Hoak with RIS Media

RISMEDIA, April 9, 2010—(MCT)—The number of American households dropped by an estimated 1.2 million between 2005 and 2008, even though the population increased by 3.4 million in 80 of the largest metropolitan areas during that time, according to a new study by a professor at the University of Southern California.

More young people are living with their parents instead of moving out, postponing the creation of their own households. Meanwhile, more families are combining households for economic reasons, including the loss of a home due to foreclosure, said Gary Painter, associate professor in the School of Policy, Planning and Development at USC. “With such a significant drop in households nationwide, it is clear the most recent recession impacted individuals’ decisions to move out on their own and caused many Americans to join already formed households,” Painter said in a news release.

The decline in the number of households contributed to the excess supply of apartments and single-family homes on the market. “The housing and mortgage industries will feel the impact of this reduction in the number of households for years to come,” Painter said in the report, which was sponsored by the Mortgage Bankers Association’s Research Institute for Housing America, a trust fund that aids research on mortgage markets and real estate finance. Also, the recession caused a fivefold increase in the rates of overcrowding, he said. A household that has more than one person per room indicates overcrowding.

While the analysis incorporates data only through 2008, Painter said the decline in household formation likely continued through 2009. “Clearly, given the depth of the downturn in 2009, and the ongoing weakness in the job market through the beginning of this year, this study gives no reason to expect that household formation has picked up at all,” he said.

There’s a strong tie between unemployment and household formation rates, Painter said. The national unemployment rate was 9.7% in March 2010, but the recession hit younger workers much harder. Workers between the ages of 16 to 24 peaked at a record high of 19.2% in September 2009, up from 11.8% in December 2007, according to a recent report from the Economic Policy Institute.

Household formation should begin a return to a more normal level by 2012, as unemployment rates decline, Painter said. But he said there isn’t a “demographic silver bullet” to solve the overhang of housing supply in many markets.

However, when conditions do improve, there could be more young adults becoming homeowners instead of moving into a rental unit, he said. “Young adults need not only a paycheck, but also a sense that they have sustainable employment before striking out on their own,” Painter said. “Typically, many new households are renters, but if young adults postpone moving out, some may have the ability to save for a down payment, causing them to skip the rental stage and move right to homeownership.”

The study, which analyzes data from the past 40 years, examines the historical impact of recessions and elevated unemployment rates on the formation of households. Findings include:

-The likelihood of a young adult forming an independent household falls up to 4% in a recession, depending on the person’s age and the severity of the changes in unemployment rates.

-The national homeownership rate has fallen to just above 67%, from above 69%. Renter household formation dropped even more than the formation of homeownership households.

-Native-born Americans showed a larger decline in household formation and a larger increase in overcrowding rates than immigrants.

-Parents with higher incomes are more likely to have young adults living with them instead of moving into the rental market. But children with parents who have higher financial wealth are more likely to form their own new rental households.