Seven of the top sixteen metropolitan areas with the highest rates of foreclosures in the nation are in California, according to the latest data from RealtyTrac. In the Stockton, Riverside/San Bernardino, Sacramento, Bakersfield, Oakland, Fresno and San Diego metropolitan areas, there was an average rate of approximately one foreclosure filing for every sixty households in the last quarter.
California is taking a very aggressive approach. Gov. Arnold Schwarzenegger recently announced that California has inked deals with number of lenders, including Countrywide Financial, Litton, HomeEq and GMAC, to streamline and fast-track loan modifications for distressed subprime borrowers.
California also is using state housing money to offer some bridge loans to help consumers rework their mortgages, and the state has created consumer protections related to foreclosures and lending. In addition, a number of California lawmakers back foreclosure moratoriums.
It is unknown if any actions taken by the California government is going to have any significant impact on home values or homeowners in distressed situations.
Economists and the real estate industry are split on whether government intervention is the right solution. But we must all agree that no one really wins when homes are foreclosed upon; loan modifications offer better results for both the lenders and borrowers. There is also a strong argument that government involvement only delays the market from bottoming out and turning around.
Heaven knows there is a lot of energy being expended ranting and pointing fingers. That is getting us no where quick! In my opinion there’s no quick fix out there to repair damages done by a lot of uninformed overspending, personal and corporate greed. However, we all have a vested interest in the Housing Market recovery. Our continued success depends on it! I am interesting in hearing some positive input on the steps you feel need to be taken / the practices you think need to be implemented to encourage a positive recovery. Please share your opinions.
To help clearly disclose the mortgage process, the federal government is giving their Good Faith Estimate document a makeover. Effective January 1, 2010, the current 2-page form will be replaced by a newly revised standard 3-page version that will include an instructional page.
The biggest plus of this new Good Faith Estimate is that it uses everyday plain English to explain and clearly discloses the key loan terms and closing costs. For instance, in one section titled Loan Summary, the Good Faith Estimate specifically addresses:
The new Good Faith Estimate includes educational elements that identify things like what charges are legally allowed to change at time of settlement and how a mortgage applicant can opt for higher fees in exchange for a lower mortgage rate. In addition, HUD estimates this new regulation will save borrowers nearly $700 at closing.
Even with all of this disclosure, the Good Faith Estimate doesn’t address the question of, “Is this the right loan for this borrower?” Unfortunately, the new Good Faith Estimate won’t prevent homeowners from choosing a bad loan; it only educates them about the facts of the loan.
That’s why it’s important to speak with a knowledgeable real estate professional so they can direct you to a trusted mortgage professional to help you meet your real estate mortgage goals. Getting the best terms on a bad loan can be far worse than getting great terms on a loan that fits your needs.
HUD will require the new standardized GFE and HUD-1 beginning January 1, 2010. To view these documents, click on the following links:
HUD’s standard Good Faith Estimate
HUD-1 Settlement Statement
How much impact do you think this will have? Share your opinions.
Attention Prospective HomeBuyers
HomeSteps will pay up to 3.5%** Buyers Closing Cost Offer
Buy a HomeSteps Home and save! HomeSteps will pay up to 3.5%** of the purchase price in closing costs for all offers presented on HomeSteps homes between October 23, 2008 and January 31, 2009. With our generous offer, homebuyers save money with each qualified closing! No coupon required.
To qualify for this great money-saving offer, just ask your real estate agent to show you the available HomeSteps homes in your area and include this closing cost offer at the time of your initial offer on a HomeSteps home. Then, upon qualified closing, you will receive your Ask an Agent buyer offer.
Don’t have a real estate agent? Click here to search for an agent near you! This offer only lasts until January 31, 2009, so make sure and Ask an Agent today about HomeSteps homes.
**Buyers Closing Cost Offer is valid only on owner-occupied, financed homes; a limit of 1% closing cost offer for owner-occupied, cash sales. Buyers Closing Cost offer must be mentioned to the HomeSteps Listing Agent at the time of initial offer on a HomeSteps home. Investor sales are not eligible for Buyers Closing Cost Offer. Promotion, bonuses, discounts and offers are not valid on auction or sealed bid homes. (Please note: HomeSteps will only pay up to 3.5% of your purchase price in closing costs, not to exceed the total closing costs. For instance, if your purchase price is $125,000, and your closing costs are $4,250, HomeSteps will only pay $4,250, an amount equal to 3.4% of your purchase price.) Seller reserves the right to remove any and all homes from this promotion at any time.
Times are certainly tough for sellers right now. And you probably won’t sell your house for the amount you would like. The best strategy for now would be to stay put and wait out the crisis. But if you simply have to sell (for a job transfer or financial reasons), there are some things you can do to expedite the process.
The following tips will help you sell your house in these tough economic times we find ourselves in:
Did you know that you can sell your house and everything in it through eBay. While this may sound crazy, eBay allows buyers from all over the world the ability to lookup listings, including yours to buy. This effectively opens your market from your small local community into a much wider buyer audience.
Zillow is a lesser known site that is actually cutting staff due to the economy, but it’s another great free resource that can help you expand your marketing reach and sell your house quicker. A good Realtor should know of several other online sites to list your house on like Google, Yahoo, Craigslist and Trulia…just to name a few others.
When you’re in Foreclosure and have to sell, the faster you sell the better and incorporating these Internet options can often times make it faster.
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