Lender may need some help with processing Loan Mods

I spoke to a client yesterday that was trying to get a loan mod. He has been talking to his lender for months. He lost his job 6 mos. ago and has been unable to get a job since then. He's living on savings and has made all of his payments to date. He bought at the peak.

He has not heard from his lender for almost 60 days. He just found out through an account manager that the mod department had rejected his file and had failed to inform him. This all took place in June.

My advice was to re-apply for the loan mod. Since the federal guidelines with President Obama's Making Home Affordable program are out there for mods, his lender may have a better program now. I also told him that he may not have made the cut for eligability due to the volume of mod's. He wasn't into the "Red Zone" yet.

I saw this article this morning that gives an indication that the loan mod wave has saturated or even overwhelmed the lenders ability to keep pace with the requests for mods.

Read this article from PR Newswire reported in Forbes. It just goes to show that it may take persistance from the borrower to get the mod.

I think it also gives us a message for our clients and people who come to us for information. We need to tell them to keep at it...stay focused... and it may take some time to get the mod.

Here is the article:

http://www.forbes.com/feeds/prnewswire/2009/07/24/prnewswire200907240952PR_NEWS_USPR_____PH51495.html

Let me know what you think and if this helps you or any of your clients.

How to Keep Your Home and Avoid Foreclosure from Freddie Mac

If you have been following this blog, you have heard about this video from Freddie Mac. It is a resource for people in jeopardy of being foreclosed on. I have received quite a bit of feedback from my clients and other people who have seen it. The feedback is overwhelmingly positive.

That's why I've decided to post it again. Please take the time to view it yourself. But more importantly, share it with anyone you know who may benefit from this information.

Check it out:

If you'd like further information about foreclosures or any real estate subject, go to my website:

http://www.bigmark.net

Follow me on Twitter, check out YouTube videos, follow this blog, or download a real estate app for your smartphone. And as always, you can access the best real estate search engine for civilians in the industry at the Rockcliff "Gateway" or call me @ (925) 890-6400

More Content, More Places, Better Results!

New requirements for Good Faith Estimate disclosures might cause some problems

Here is information about a new requirement that is part of the MDIA. (Mortgage Disclosure Improvement Act) I received this information from the CAR (California Association of Realtors)

So think about this one... you have a transaction in escrow, everything is coming together. You are about 30 to 45 days into this. Contingencies are removed. The Buyer is scheduled to sign loan docs at 3:30pm this after noon. The moving van is in the Sellers driveway. COE is just a couple days away. Sign, fund, close.

Retail interst rates drop an eighth with the lender at noon. Now what?

Ok, ok. I don't know the answer. I tried the link below but no luck. I guess the site is flooded with Realtors checking it out. But what if you have to re-draw the Good Faith Estimate and wait 3 days or no funds? What happens if the answer is yes? Can the Buyer waive the 3 day wait period? What about the Seller?

Ok, ok. You wait the 3 days, docs are drawn, Buyer is scheduled to sign... It happens again... or worse... the rate goes back up. Does the process start all over again?

Maybe I'm getting worked up over what might happen. I know that's never a good thing. But how do you explain to the Seller that it will only be a couple more days in the hotel?

Check out this information and let me know what you think about it. Better yet tell me your wildest dream worst case scenario. I'll put it in a future blog.

New disclosure rules could affect close of escrow:

Starting July 30, if the APR on an initial Good Faith Estimate is no longer accurate (within a 0.125 percent range) at close of escrow, a lender must generally provide a residential borrower with a new disclosure and a three-day right to rescind before consummating the loan.
REALTORS® are forewarned that, because of this new three-day waiting period, a lender's failure to timely provide corrected disclosures has the potential of delaying funding of the loan and close of escrow.

This new requirement is part of the Mortgage Disclosure Improvement Act (MDIA) implementing new loan procedures to protect borrowers and foster greater transparency in mortgage lending.

For more information on the MDIA, including its applicability, details of the three-day waiting period, and other requirements, go to

http://www.car.org/legal/other-legal-features/realegal-chart/2009-realegals/realegal-7-17-09/?redirectFrom=login.

California New Housing Market Improving says CBIA

I have been selling new construction homes for many years. I have several friends and clients who are builders and developers. So I try to keep my ear to the ground with anything concerning the New Construction Market.

I saw this article from the California Building Industry Association directed to my via the California Association of Realtors. The article claims that the new construction market in CA is improving. Check it out:

http://www.cbia.org/go/cbia/newsroom/press-releases/california-new-home-market-slowly-improving-cbia-announces1/

I love the conclusion...it says that local and State governments need to remember that we need to build more not less homes and condos. That's great. Right now we don't need to tell the government entities...we need to tell the BANKS!

Ask any builder about what they have to deal with to get a construction loan. If they can at all. Because of the perceived risk, the Banks are killing the industry.

We should be asking the government to provide an FHA program for development. Ferderal guarantee, lending guidelines, maybe even a resale program for the finished product. Keep the builders building. The small guys would be able to stay in business. Keep people working!

What do you think?

YouTube from FreddieMac for people facing foreclosure: Finally a good use for Social Media

In this age of everyone telling us that social media is the latest, greatest way of getting business done. I'm sure you've heard the pitch... drop some $$ and you get secrets to using social media to capture leads and influence people.

Farm the internet. You'll make more money than you can count. If you aren't using it you will get left in the dust. Whatever!

Facebook, Twitter, YouTube, LinckIn, ActiveRain, the list goes on and on. Here is a great use of socail media.

Check out this YouTube video from Freddie Mac. It is produced for people facing foreclosure. Pass it on to your clients and fellow agents. It may help the stress levels and feeling of helplessness for these folks.

http://www.youtube.com/FreddieMacWeb

If the right person gets this video, you will have used social media to capture a lead and influence people.

Let me know what you think.

Check out my website for more helpful information and tools for anyone in the real estate market today.

Mark Wilson

www.bigmark.net

(925)890-6400

Foreclosures are down 11% Nationwide - Why aren't we hearing this from the News guys?

I was looking for a topic to blog today and ran across this article in Business Week. It seem like good news. But I don't think it goes far enough to explain the data. Check it out.

http://www.businessweek.com/the_thread/hotproperty/archives/2009/07/foreclosures_fa.html

The data shows foreclosures down 11% nation wide. It acknowledges that in some areas the drop is much more significant. It also says that home sales are up too.

Does this mean the economy is recovering? Well, I don't know about that but what I think it does show is that the banks, homeowners, and realtors are working hard to modify or short sale people out of their extended positions and try to keep homeowners in homes where possible.

The fact that home sales are up indicated that people not only have the ability to purchase homes, but they are feeling like they are getting a relatively good deal in the process.

Because the foreclosure rate has slowed, inventory levels have remained moderate to low. Low interest rates and lower prices are creating a little more stability in the market.

Is that recovery?

I think it's the first step. All we need is a little good press....a little consumer confidence... And the process has to continue between banks, borrowers, and realtors. Get people into homes they can afford, and keep stability in the housing market. Why aren't the news guys telling us about this?

Let me know what you think,

Zillow traffic is through the roof. I'll bet their value for your home is off!

I get this all the time... Zillow says that this house sold for $X. Zillow says that 12345 Main St. is for sale. Just 'cause Zillow says it doesn't make it so...

Here is an article from PR Newswire giving traffic statistics for Zillow. They are quite impressive.

Zillow.com(R) Traffic Grows 67 Percent Year-over-Year in First Half 2009

Amid real estate market uncertainty, homeowners, buyers and sellers turning to Zillow(R) in record numbers for research and advice

SEATTLE, July 1 /PRNewswire/ -- Real estate Web site Zillow.com today announced it broke multiple records for site traffic and user activity in the first six months of 2009. An average of 8.3 million unique users visited Zillow each month during this period, which is an increase of 67 percent year-over-year(i). Additional milestones include: 44 percent year-over-year growth in page views in the first half of 2009. 35 percent more for-sale listings on the site in the first half of 2009 versus a year earlier, as the result of more listings feed partnerships with brokerages and Multiple Listings Services. In total, 3.6 million listings are posted on Zillow today. More than 535,000 people have downloaded the Zillow iPhone App since its launch in late April, more than any other real estate-related app. Consumers submitted 265,000 loan requests on Zillow Mortgage Marketplace in the first six months of 2009. Lenders responded with 3.5 million custom loan quotes during this same period. "Home prices continue to drop in many areas, mortgage rates change constantly, and people have a lot of questions about their homes and their local markets. This is driving record numbers of people to visit and engage on Zillow.com," said Spencer Rascoff, Zillow's chief operating officer. "In addition to seeking real estate listings and data, potential buyers and sellers are voracious for information and are asking questions in Zillow Advice, and getting answers from real estate professionals in their communities." The Zillow Directory of real estate professionals now lists nearly 200,000 real estate agents, and more than 12,000 lenders who have created a profile and are active on the site. In fact, 25 percent of Zillow's monthly traffic - or 2.1 million unique visitors in June - self-identified as a real estate professional. If you've read this far you probably are impressed. I am. The question is... Why aren't these people asking realtors? Well maybe they are. I know I say "don't trust Zillow for anything but a ballpark guestimation." "Go to my website and search the MLS. It will give you better results." What do you think of Zillow? Please visit my website at: www.bigmark.net You'll find many great resources to help you navigate the real estate world. World class search engine, smart phone application, YouTube, Twitter and other helpful things. Visit or give me a call today. Mark Wilson - J Rockcliff Realtors, Inc. (925) 890-6400 mark@bigmark.net

225 Alamo View Place Walnut Creek - Custom Home

Check out a new listing of mine. It's 225 Alamo View Place in Walnut Creek. 5 bedroom - 5 full baths. 3900 sqft. Completely remodeled. Walnut floors, slab granite, home theatre, salt water pool and spa, steam - dry sauna. It is a short sale. Asking $1,175,000. Priced for a fast sale.

Here is a YouTube video: http://www.youtube.com/watch?v=GMYGdH3pafc&fmt=22 It's in HD.

Contact me directly for a showing. (925) 890-6400 www.bigmark.net

Reasearch shows that as many as 25% of Foreclosures are from people who can afford their payments

Here is an interesting article from Market Watch. It says that as much as 25% of foreclosures are from people that can afford thier payments. Check this out:

http://www.marketwatch.com/story/why-those-who-can-pay-walk-away-from-mortgages?siteid=rss

Here are a few of my thoughts about the article.

With 25% of defaults are made by people that can "afford" their payments. These people are taking a calculated loss approach to their equity, credit, and housing. I can't say if they are right or wrong.

Many don't have another option. They can afford rent. Probably can sustain the hit to their credit for a few years too. Who knows there may be amnesty in the future.

Many banks are taking the Jessie James (of West Coast Chopper fame) approach with their customers. Jessie James has a "Pay Up Sucker" tatoo on the palm of his right hand.

Doesn't matter what the rate is. Doesn't matter what the property value is. Doesn't matter that the neighbor hasn't made a payment in 10 months and is still in the property.

Hopefully the federal TARP for loan mod programs will give these people another option. Get a loan mod to lower their loan balance and payment. The borrower stays in the house. The lender continues to get payments. No foreclosure, no further excessive devaluation of the property. The bank gets some relief.

Lenders currently offering voluntary loan mods to their customers are showing a much lower foreclosure rate that the JJ lenders. Many have learned throughout this process that it makes better scenes to mod than kicking the customer to the curb.

I have even seen commercial lenders in the market place trying this approach with heavily leveraged commercial property owner. Mod the rents, mod the payments, mod the loan. Again a more equitable solution than taking the property.

And a better use of federal funds than creating bigger government. (No offense to Jessie James)

What do you think?

Happy 4th of July - What are you doing for the 4th?

Vacations, picnics, parties, BBQ's.. What are you going to do this 4th of July? Not to be cute but I wonder what the vacancy rate is in Honolulu this weekend. You know, with N Korea threatening.

Well, here's what I'm going to do... I have a nephew that has just come home from Iraq. The family is getting together in Elk Grove for a BBQ. He has just completed two tours in Iraq. Interestingly enough with the same division as my dad served in the Pacific in WWII. I can't tell you how proud we all are of him...and happy he's in one piece.

If you haven't made plans, check this out:

Vacations, picnics, parties, BBQ's.. What are you going to do this 4th of July? Not to be cute but I wonder what the vacancy rate is in Honolulu this weekend. You know, with N Korea threatening.

Well, here's what I'm going to do... I have a nephew that has just come home from Iraq. The family is getting together in Elk Grove for a BBQ. He has just completed two tours in Iraq. Interestingly enough with the same division as my dad served in the Pacific in WWII. I can't tell you how proud we all are of him...and happy he's in one piece.

If you haven't made plans, check this out:

http://www.calvarytemple.org/component/option,com_events/task,view_detail/agid,90/year,2009/month,07/day,02/Itemid,26/

"The Flag" formerly "The Singing Flag" is a real old fashioned 4th of July event. It takes place at the Dave Brubeck Park in Concord. There are fireworks, speeches, songs, and some military displays. The fireworks are some of the best around on the 4th.

You may have to stand for the Star Spangled Banner.

The shows are tonight (2nd), Fri, and Sat at 7:30pm. It runs about 2-2.5hrs. You won't be disappointed. My hot tip is to watch the fireworks from the Concord Vietman Veterans Memorial. You can avoid the crowd. But the event, close up is very fun. Fun for all ages. Bring the kids.

Fly your flag!

"The Flag" formerly "The Singing Flag" is a real old fashioned 4th of July event. It takes place at the Dave Brubeck Park in Concord. There are fireworks, speeches, songs, and some military displays. The fireworks are some of the best around on the 4th.

You may have to stand for the Star Spangled Banner.

The shows are tonight (2nd), Fri, and Sat at 7:30pm. It runs about 2-2.5hrs. You won't be disappointed. My hot tip is to watch the fireworks from the Concord Vietman Veterans Memorial. You can avoid the crowd. But the event, close up is very fun. Fun for all ages. Bring the kids.

Fly your flag!

Google Voice - Revolutionize Realtor Communication Logs

If you don't know what Google Voice is, don't feel bad. I asked around the office and not many people know about it.

I think that Google Voice will become a tool that Realtors can't live without. That may be an exageration, but we will be able to manage our phone calls and voice mails just like emails. Save them in a log for that rainy day when someone asks for your communication log. If you know what I mean.

Check out this CNET article. It talks in a bit more detail about the service.

http://news.cnet.com/8301-17939_109-10272937-2.html

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