Foreclosure; Letting Go and Rebuilding

Posted on by
58

This is Part Five of a series of articles on foreclosures.
This article does not constitute legal advice.
Foreclosure laws vary from state to state.
Homeowners in financial distress should always hire legal counsel. Call your local state bar association for a referral.  Reduced or free legal aid may be available in some states. Ask for a referral from your state Bar Association or through a LOCAL HUD-Approved Housing Counseling Agency.

Part one: Foreclosure; Losing the American Dream
Part two: Options for Homeowners Facing Foreclosure
Part three: Loan Modifications
Part four: Government Intervention in Foreclosure
Part five: Foreclosure; Letting Go and Rebuilding

In part five, we visit Cap and Maria, who went through the foreclosure process and began rebuilding their lives.

The Captain and Maria purchased a house in 2006 using a Pay Option ARM from Wachovia.  Their mortgage broker explained the “pick a pay

Is it possible we are at the bottom?

Posted on by
56

***Updated/Revised 4:30pm 02/08/2009 PST:  Here is the link to the “Memorandum” (.pdf document) showing how this mortgage broker, in his own words, fraudulently originated millions in loans and how the fallout will plague our economy.  Big thanks goes to blogger “Scotsman” for the getting the document to me.

——————————————-

This is how is it possible………..we may not be at the bottom.

Ardell, I share your hope.   My hope for change is that real estate and lending industry comes to grips with how out of control the core players were that led us to the crisis we are in.   If we all point incriminating fingers to other people in our industry from escrow people to mortgage brokers to agents to Wall Street, pretty soon there’s nobody else to point to.  It circles back to all the players who participated.  Too simple of an explanation of a complex problem?  Maybe.  But, it’s fix has got to start with people in the trenches who are transacting the sales and arranging the financing.

But my hope and Country fight an uphill battle because of people such as Christopher Warren, the mortgage fraudster who wrote the above missive, “how is it possible”. Christopher Warren skipped out of the country on a private plane this past Monday.

See his incredibly clear picture of what is facing our markets by his “memorandum.” (.pdf document).

If one man’s expose of what went on in lending by one person does not make you pale, then I don’t know what will.

An excerpt from Christopher Warren’s  “how it is possible:”

  • That CITI Mortgage didn’t catch correspondents Mortgage Bank of California and Bondcorp Realty Services over-financing over $30,000,000 in bad mortgages with cash-back purchases for straw buyer groups?   How many of these loans are already now owned by our government, tax-payer subsidized, FNMA and Freddie Mac?
  • That GMAC Mortgage LLC., bought over $3,000,000 in mortgages secured in the Orlando Academy Cay Club aka “The Greens

Fannie Mae Increases the Allowance for Financed Properties Owned

Posted on by
32

It is really challenging to keep up with our constant changing guidelines.   Just this morning I was commenting over at the Seattle PI Real Estate Blog about the conventional guidelines permitting only four financed properties at a time for a borrower (more than four financed properties–no conventional mortgage for you!).    Moments ago, I received this updating Fannie’s guidelines (Announcement 09-02):

Multiple Mortgages to the Same Borrower
To support prudent lending for housing investment, Fannie Mae is changing our current limit of four financed properties per borrower. We will allow five to ten financed properties per borrower, with certain eligibility and underwriting requirements, including a 720 minimum credit score and 70-75% maximum LTV/CLTV/HCLTV (depending on the transaction and property type). The requirements apply to any loan being delivered to Fannie Mae, regardless of whether Fannie Mae is the investor on the borrower’s other mortgages.

Just a reminder that any mortgage guidelines that you find on the internet may no longer apply!

I better hop on over to the PI and correct my comment from this morning.  🙂

What will they say in 20 years about today's new homes?

Posted on by
6

rcg1When I look at new construction for sale I often wonder if the architect and the builder ever spoke or better yet, if the architect or the builder would ever live in the house they designed/built (I am a builder). I seem to be asking myself that question even more lately as I tour homes built from about 2005+.

I wonder, besides the financial crisis, what will this era’s theme of houses be?
It will for sure be about townhomes, but (on average) I am afraid it will also equate to poorly designed and constructed too.

I was touring a home today that made me wonder if the builder ever asked the question, “where will the couch go

Buyer Beware!!! – $8,000 Tax Credit?

Posted on by
178

UPDATE: signed and passed 2/17 at $8,000. See more details here.

Original post below does not indicate the change to “must not have owned a home during the last 3 years” which was added to the final bill before it was passed.

*********

If you are currently in the process of buying a house, be aware that there is a $15,000  ($8,000) Tax Credit in the new stimulus bill which may, or may not, pass tonight. Then it has to be signed, hopefully by President’s Day they are saying.  Then we have to watch the effective date closely “for homes closed on or after ?” Likely that will be on or after the day the bill is signed, which presumably will be some time during the month of February.

Just a day or so ago an RCG reader asked if she could take the old credit on this return, and she bought ONE DAY too early to get the credit!  Aaaargh…you don’t want that to be you, especially since this credit in this stimulus package is not a loan and is doubled (as of last night) to $15,000 as it stands right now!

That’s a lot of moolah to forfeit by closing one day too early!

Share this post!

stumbleupon

There are a lot of discussions all over the internet, the news and Twitter about the pros and cons of this, but very few warning buyers who are currently in escrow or looking at houses today!  Watch this closely, and sellers should be prepared to move the close date a day or two, if needed.  NO ONE wants to be responsible for a buyer losing out on a $15,000 (an $8,000) credit!

This is like every SELLER getting a $15,000 (an $8,000) price reduction, complements of Uncle Sam and President Obama!  Big NEWS for both buyers AND sellers of homes. Watch the news VERY closely in the coming days.

RCG's Ardell and Rhonda Win Three of the Magnificent Seven Awards for 2008

Posted on by
6

Larry Cragun compiles a long list of consumer centric blog articles throughout the year and just released his 2008 picks for the Magnificent Seven Awards.  RCG’s Rhonda Porter and Ardell DellaLoggia made it to the top.  Here are the winning RCG entries:

Flat Screen TV: Is it Attached?
by Ardell DellaLoggia
“At what point does a wall mounted TV that is hard wired into the wall without outlets become “an installed electrical fixture

7,200 sf lot West of Market Kirkland

Posted on by
8

Awhile back, Dustin wrote a post about Pocket Listings, and we had a discussion about what “pocket listings” are, and why agents advertising them is generally against mls rules.

A pocket listing is someone who tells you they want to sell a property, but for some reason they either are not ready to, don’t want to, or can’t enter the property in the mls. 

I think this one may fall into the category of “can’t”, though I’m not totally sure.  I was recently contacted by someone who owns a 14,000 +sf lot with a house on it, West of Market in Kirkland which is zoned for 7,200 sf lots. It is a view lot, and the 7,200 sf vacant portion of the lot is on the view side (view of Lake Washington)  I believe it is unobstructable as to houses but not trees, across from Waverly Park.  Taking another walk over there today to study it further.

Back to the mls and “pocket listings”.  Clearly to put a property in the mls, you have to have an asking price.  Given current market conditions, do the builders want a 7,200 sf lot with a view West of Market in Kirkland?  There are lots of houses for sale over that way.  Might someone want to build their own custom house and get the lot cheaper by doing the short plat?

Since the lot is not two separate lots today, should the seller go to the time and expense of separating it into two lots and increase the cost of the lot accordingly?  Or in this day of the cheaper the better for a buyer, should they let the buyer of the lot participate in the short plat to save some money?

Given there is no current legal entity “7,200 sf lot” until after it is short-platted into two lots, can you even put the property in the mls, given it doesn’t exist as that legal description?

There is a note in the mls rules that you can list a property if it can not be put in the mls by reason of other mls rules, but you can’t use a NWMLS contract form to do so.  This one seems to fall into that category.

So to Dustin, since you asked, I guess there may be a “true” pocket listing…even here in the Seattle Area.  Maybe not.  Perhaps someone will shed some light on this in the comments.

Zillow widens gap on Trulia, traffic soars to 7.5 million visitors

Posted on by
8

Thanks to John Cook at TechFlash for the article (and picture)zillow-month.  I overheard Rich Barton talking to some friends a couple weeks ago at a TechFlash Launch Party talking about the record number of hits they were receiving.

I guess using Zillow today, was like watching the NASDAQ 8 years ago.

Reminder Rain City Guide MeetUp Tonight

Posted on by
11

Where: Crossroads Food Court (behind 1/2 Price Books)

When: 6:30 P.M.

Crossroads is at 156th Ave. NE and NE 8th Street in Bellevue

We likely will be at the street entrance end of the Food Court, where there are all tables and no food booths.  We will have RCG signs on the tables in the area.

I put (behind 1/2 Price Books) as it is easier to see that from the parking lot, then to describe the exterior entrance to the Food Court area to the left of 1/2 Price Books.

If you are in the Food Court and looking for us, just call my cell 206-910-1000.

If anyone has been to a MeetUp and has any advice for us, that would be great.  I know Redfin and Seattle Bubble have had them and they just hang out together and people find them.  I expect we will talk about just about anything loan, real estate and anything else related.  Blogging.  Whatever.  I expect if anyone NOT RCG has a topic, their topic gets preference.  If no one suggests a topic, I’m sure even if it is just Rhonda, Jillayne, Robbie, Craig and me plus a few agents, we’l have plenty to talk about 🙂

Hope you can make it!