Susan Davis (D-San Diego)

A bill authored by House member Susan Davis (D-San Diego) was introduced  to Congress to give homeowners at risk of foreclosure a fair chance to avoid further damage to their credit rating. The Short Sale Transparency Act would require the nation’s giant mortgage lenders, Freddie Mac and Fannie Mae to disclose the minimum price they would be willing to accept for a short sale property if the first offer to purchase a home is not accepted.

This law would force bankers to provide the minimum price in an effort to aid the housing market.

Properties that are sold as short sales sell for less than what is currently owed on the mortgage principal, and must be approved by lenders in order to transfer title without blemishes on their title.

Short sales have increased as a last ditch effort by homeowners to avoid foreclosure. When the price a lender requires is unknown, short sales often become less viable. The “shot in the dark” method for determining bids to offer the bank are creating much wasted effort on all involved.

Loan servicers often repeatedly deny short sale offers without providing homeowners any guidance on the price the lender is willing to accept. As a result, many homeowners that may have sold their property as short sales end up as foreclosures. The bill would require lenders to disclose the minimum price that banks would take for their home to provide a level playing field for homeowners, banks and investors.

“People deserve a real chance to avoid foreclosure,” said Davis. “It is unfair to expect someone to complete a short sale instead of abandoning their home to foreclosure, if the banks don’t meet them half way. So many homeowners are willing, even eager to work with banks to get out from under the mortgage and protect their credit rating,but far too often, they find themselves in a guessing game as to what dollar amount will complete the sale.”

The bill was offered just weeks after another California Congresswoman, Maxine Waters (D-Los Angeles) called on President Barack Obama to offer bold solutions on jobs and the foreclosure crisis. Waters said Obama should demand bankers modify mortgages for millions of homeowners at risk of foreclosure.

The veteran Congresswoman has been a leading voice for homeowners at risk of losing their homes, calling for a foreclosure moratorium after the robo-signing scandal made headlines a year ago, and has lobbied to help homeowners and tenants renting properties at risk of foreclosure.

It appears the call to action is building, but it needs to happen now. For many, the legislation will be to little , too late.

All the short sale information you need go to ShortSaleDignity.com

We do expect San Diego prices to start rising soon as the inventory is low enough to create an upward pressure on price.

Want to buy a house in West Virginia?

One thing is for sure, 2012 and 2013 will be very interesting years for the housing market. There are quite a few variables including interest rates, how lenders will handle REO’s and short sales, and what the government will do.

One thing is for sure right now though…the interest rates are the lowest in history and prices are the lowest in 5 years. Chances are prices will not be this low again in our lifetimes.

How can you take advantage? Use any investment money to purchase real estate. Buy a condo and rent it out. When you calculate the numbers, you can easily get a positive cash flow with as little as 20% down.

If you want to take advantage of this opportunity of a lifetime in San Diego, call me at 619.985.6528 or visit the best property search in San Diego at AtHomeInSanDiego.com

One last thing for now….the current economic times have been difficult for many. If you are having mortgage challenges, don’t ignore them. They don’t go away by themselves. Check out my website at ShortSaleDignity.com .  There you will find my free book  Fighting Foreclosure. I can assist in San Diego but can also refer you to the best Certified Residential Specialist and short sale professional in your area.

CoreLogic August Home Price Index (year-over-year change)

Locally, the median price for all sales – including resale homes, resale condos and new homes – was $315,000 in September, down 1.6 percent from August and down 4.7 percent from a year ago. The new-homes sector was the only area that saw a year-over-year price gain, rising from $439,250 to $515,000, or 17.2 percent.
The county recorded 3,084 sales in September, down 5.1 percent from August but up 0.5 percent from the same time last year. The only sector that saw a positive year-over-year gain in sales last month was resale homes, rising 6 percent.
As a region, there were 18,149 total sales, counting Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in September. That figure is down 7.7 percent from August and up 0.3 percent from a year ago.
Demand is staying moderate because of affordability. The interest rates remain at or near all-time lows. In addition, prices are still at or near all time lows. What a combo, you would think demand would be through the roof. However, loans are still difficult to get and many people feel economic woes and are putting off any kind of “large purchase”.
Historical data from the data company show sales have fallen on average 8.3 percent between those months since 1988, when the real estate data company began tracking those numbers.
Meanwhile, the median price for total homes sold last month was $280,000, up 0.4 percent month-to-month but down 5.2 percent from a year ago.

Those who have the means who buy now will be looking back in 5 years saying “Thank god I bought those properties when I did!” The rest will be looking back and saying “If only I had….”

If you are lucky enough to be looking in San Diego, call me at 619.985.6528 or send me an email. And…if you are having any kind of mortgage difficulty, visit ShortSaleDignity.com.

Please feel free to leave any comments — thanks!

I just wanted to present the pros and cons here. Although I am intrigued, I think maybe a homebuyer exemtion to the sales tax and a federal homebuying subsidy if planned properly could be an acceptable substitute within the context of any elimination plan.

Please read below and feel free to post any comments. Also…if you need help or information on how to handle your mortgage, please go to my website at ShortSaleDignity.com I also have an incredible advanced property search site at www.AtHomeInSanDiego.com  for San Diego County and I can refer you to the best Certified Residential Specialist in your area. Just call me 619.985.6528.

Now….see what you think on this issue and share your opinion. Thanks

How the deduction works

In general, any home owners who pay U.S. taxes and who itemize their taxes can deduct mortgage interest attributable to primary residence and second-home debt totaling $1 million, and interest paid on home equity debt of as much as $100,000.
Mortgage interest deduction threatened

In recent years, the mortgage interest deduction has come under attack. Among the suggestions for cutting it back to deal with the deficit:

• Reduce the mortgage interest deduction for upper-income taxpayers—they’d only receive 28 cents on the dollar, even if they’re in a 33% or 35% tax bracket and can now deduct 33 or 35 cents on the dollar.

• Reduce the $1 million cap by $100,000 a year.

• Change the mortgage interest deduction to a 15% tax credit.

In the past, members of Congress have suggested other mechanisms for eliminating or limiting the mortgage interest deduction. None of those has ever gained traction.

Arguments against mortgage interest deduction

Arguments against the mortgage interest deduction center on who benefits and whether the government should support home ownership. They say:

• It primarily helps the wealthy, since high-income taxpayers are more likely to itemize their deductions and to own homes. About 90% of taxpayers earning more than $100,000 itemize, while only 18% of those earning less than $50,000 follow suit, the Tax Foundation estimates.

• Taxpayers who don’t itemize deductions get to use the “standard deduction.” They do that because it gives them a bigger tax break than itemizing to use the mortgage interest deduction.

• Ending or reducing the mortgage interest deduction would create a deep source of money for reducing the budget deficit.

• In the aftermath of the mortgage crisis, the U.S. needs to rethink its favored tax treatment of home ownership.

Arguments for mortgage interest deduction

Those who favor keeping the mortgage interest deduction say it helps middle-income families, who already pay nearly all U.S. income taxes. Plus, getting rid of the mortgage interest deduction would hurt home prices.

• More than 60% of the families who claim the mortgage interest deduction have household incomes between $60,000 and $200,000, estimates the NATIONAL ASSOCIATION OF REALTORS®.

• A disproportionate number of those high-income taxpayers live in areas where housing is especially expensive, such as California and New York. In high-cost housing markets, lowering the $1 million cap would add a tax burden on families who already must pay high prices for homes.

• Home owners already pay 80% to 90% of the income tax in our country, and among those who claim the mortgage interest deduction, almost two-thirds are middle-income earners, says NAR Chief Economist Lawrence Yun. So home owners, who are the pillars of federal income tax revenue, would have to shoulder a bigger tax burden.

• Home values could fall 15%, says Yun, as buyers discount the value of the mortgage interest deduction in their purchase offers.

• It’s faulty to link the mortgage meltdown to the country’s support for home ownership. The meltdown is rooted in lax underwriting and faulty ratings by credit rating agencies of the securities backed by the mortgage, says Yun.

Protecting the deduction promotes housing. In supporting the mortgage interest deduction, you help ensure that tomorrow’s families can follow the same path to home ownership that so many of us have already traveled. So either keep the deduction or find an equivilant replacement

The Egyptian - San Diego CA

Manyl home buyers are tired of all the responsibilities of owning a single family home. The dreams of  huge rambling rooms, spacious yards and seclusion no longer outweigh the alternatives. Many buyers, rather, are on the search for a home that will be easy to care for and will give them plenty of opportunities to be active and enjoy a social life and community activities.

From retirees ready for down-sizing to just marrieds to first time home buyers, condos offer a wealth of opportunity. Many condo communities come equipped with clubhouses,  gyms,  social meeting and gathering rooms and other common outdoor meeting areas. Outdoor pools and spas are commonplace. Others go above and beyond with organized mixers, dances, movie nights, and more!

Single homeowners are finding that condos can be a great alternative to Facebook and Twitter and the zillions of dating sites for socializing. They also can be a wonderful choice for older adults who are fully capable of caring for themselves, but wish to cut back on home maintenance.

Owning a condo typically means you no longer have to worry about mowing your lawn, maintaining landscaping, cleaning  or shoveling the snow from the sidewalks (or blowing the leaves  or dust if you live in more moderate climates), or making large-scale repairs. You pay a small fee each month (HOA fee) that pays for your portion of the upkeep. Your condo association should also have a reserve fund that is held for large repairs, such as roof replacement or building painting when the time comes.

Not all condo associations are exactly the same. Some cover water, hot water, trash, sewer, insurance ,cable  and many other things. Before you buy, be sure to check into how diligent the association is and exactly what your fee covers.  Are the reserves sufficient, how often  have they raised fees? Do they have any lawsuits pending?

When you set up a showing, (San Diego, call me 619.985.6528) be sure to check out ALL the amenities.

Condos generally come with an extensive set of rules and guidelines(CC&R’s). This means the condo government dictates what you can or can’t do to your home. They can prohibit improvements, pets, home-based businesses, and subletting. The positive side of these rules is that your condo community should stay uniform, updated, and in good order. If you have an issue with a neighbor, you can easily lodge a complaint, for each resident is responsible for complying with the rules. In addition, you can become a board member of your condo association and thus impact these rules and regulations.

There are a few things that are not so great about condo life…One primary negative is the overall lack of storage. Generally, you have no garage, (although many townhomes and rowhomes are exceptions), there usually is no attic, basement, or backyard storage shed to house those Christmas decorations and other seasonally stored items. Some condos do come with storage rooms or storage lockers though.

Another downside is the monthly HOA fees. For the entire time you own the condo, you will be expected to pay these fees. While these go towards upkeep and amenities, it is an added financial burden that one must consider on top of the purchase price. You can look at these fees as replacing some of the fees you would have as a homeowner (landscaping, pool maintenance, insurance, etc.) Additionally, you are still responsible to pay your monthly fees even after your condo is entirely paid off.

Finally, while owning a condo means you have many comparable homes on hand for pricing comparison, it also means you have lots of competition on hand for units that are just like the one you want if you are trying to find a “bargain”.

Condos can make for an incredible living environment . Be sure to do your due diligence when researching that community that is perfect  for you!

Visit my website at ShortSaledignity.com for a free Fighting Foreclosure guide

Feel free to comment!

And…by the way….If you are having even the slightest hint of mortgage problems,go get my free book,  Fighting Foreclosure.

I am a Certified Residential Specialist serving all of San Diego County in Southern California. Please contact me if you have any real estate questions at all. I can refer you to a Certified Residential Specialist and a short sale expert in your area.

Shadow inventory

This shadow inventory will slow down the housing market recovery. Monthly foreclosure numbers will remain high through 2012 and the REO Inventories will remain high through 2013 possibly even 2014.  The banks hold about 800,000 REO and three quarters of those are not listed for sale.

The shadow inventory keeps home prices down for months and even years. States like California, Florida, Illinois, Georgia and Ohio have the largest shadow inventories. It takes more than a year for the bank to put up “For Sale” Signs.  All of the people 90 days or more past due are all potential foreclosures if they can’t accomplish a modification or a short sale.

Many short sale prices are not an accurate reflection of true market value.  Many buyers gravitate toward short sales for two reasons. The first is that the price is attractive and the second is that the potential buyer believes the seller is desperate.

Short sales are on the rise as the foreclosures have slowed over the last few months. This gives distressed homeowners who do not qualify for loan modification or refinancing a viable option to foreclosure. Short sales also give lenders the opportunity to avoid the long, costly and increasingly messy process of foreclosure
and the responsibility of reselling the property as an REO.

Once a property is foreclosed upon, the bank usually will not be able to get a higher price for the property. Many
times if the bank can negotiate with the seller’s buyer on the offer price for the property, they are going to get more for that property than if they take the property to sale.

So….if you are looking, go get a deal on a short sale or if your mortgage challenges have got you down, call me at 619.985.6528. I will take very good care of you in San Diego or refer you to the best CDPE, CRS  in your area.

Free book Fighting Foreclosure – get your copy NOW!

Please feel free to comment on the article. Call me in San Diego if you have any questions. I can refer you to a great agent in any city. My number is 619.985.6528.

Need to understand short sales? Head right on over to ShortSaleDignity.com. Do not put this off – the website is VERY informative . The best San Diego search online can be found at AtHomeInSanDiego.com. Check it out!

Selling a home is never painless, but during the current buyer’s market in many cities a house sale is more delicate than ever. That’s why choosing the most dependable realty agent will make a serious difference in both the price you get and the speed with which your residence sells.

Your starting decision is whether or not you require a real estate agent. Close To 20 percent of homes are sold with no professional real estate agents. However, many of those do-it-yourself sellers said next time they would find a professional broker. Additionally, many do-it-yourself home sellers eventually hire a real estate agent to market their homes.

With no realty agent you will have complete obligation for advertising, answering phone calls, demonstrating the house to likely purchasers, assisting with financing, preparing a lawfully binding sales contract, setting up the sale closing, and managing particulars of the sales agreement.

Nonetheless, there is something that is even more frightening than all this – competition with thousands of other houses for sale via the local MLS (multiple listing service).

This means that houses which are in the MLS have a privilege because dozens of them get presented by an agent to prospective buyers and a great deal of them meet the buyer’s wishes. Your single house doesn’t stand a chance to dozens of others.

Going through the procedure of picking out an agent is the best way to make up your mind if you actually require one. This procedure will allow you to find out all the things they do for house sellers and help you recognize if you necessitate marketing service.

Consult your neighbors to seeif they can recommend to you some professional real estate brokers. To find out whether or not you need an agent, you must speak with a minimum of three brokers who sell homes in your vicinity.

Alan Schmitt - Realtor

When selecting real estate agents to talk to, be sure to invite local brokers who have recently contacted you about either selling your house or calling you to their open houses of nearby homes currently listed for sale.

Also contact agents who had “for sale” signs on neighborhood houses which became “sold” signs. In addition, check the newspaper classified ads to learn which agents advertise homes for sale in your vicinity.

Last, phone nearby brokerage firms which specialize in homes in your region and ask the managing director for the name of that firm’s most successful agent who markets houses in your vicinity. Don’t merely cold call and talk with any available broker since you are probably to get an unpracticed agent who has “floor duty” when you call.

If you or someone you know is having ANY kind of mortgage problems, please have them go to my website and get my free book on foreclosure avoidance. It is so much easier than you think!

‘Til next time, make some comments and return here often!

A separate survey by the Mortgage Bankers Association suggested many homeowners and would-be homeowners are unwilling or unable to take advantage of record low rates, with demand for refinancings and purchase loans both falling last week.

Inman news reports that we have now surpassed the lowest of the low.

Fannie Mae economists are projecting that mortgage rates will stay well below 5 percent through 2013, and that demand for purchase loans will more than double in the next two years.

Freddie Mac’s survey showed rates on 30-year fixed-rate mortgages averaged 3.94 percent with an average 0.8 point for the week ending Oct. 6, down from 4.01 percent last week and a 2011 high of 5.05 percent in February. Rates on 30-year fixed-rate mortgages have never been lower in Freddie Mac records dating to 1971.

Call me at 619.985.6528 and I will refer you to the best Certified Residential specialist in your area. Of course, if you are in San Diego, call me. Not only will I find you an incredible loan, but…an awesome property to live in or for investment.  Now Is The Time.

Visit my website for the best local search available.  AtHomeInSanDiego.com

Despite all those millions of distressed properties out on sale,
depressing home prices even further, there is one glimmer of hope
according Standard & Poor. According to the report the time it
would take for banks to purge all of this so-called “shadow
inventory” from the market (through foreclosure sales, mortgage
modifications and other measures) shrunk to 47 months during the
second quarter, a significant drop from the 52 months it
estimated for the first quarter of this year. The report also
found that the total dollar value of the loans on these
properties — known as non-agency loans because they are not
backed by Fannie Mae, Freddie Mac or the Federal Housing
Administration — also fell to $405 billion at the end of June
from $433 billion three months earlier. S&P said the decline was
helped by stabilizing liquidation rates and by fewer borrowers
falling behind on their mortgage payments as the economy slowly
recovered during the quarter.

S&P estimates that there are still a total of between 4 million
and 5 million homes, including those with agency-backed loans, in
shadow inventory, an amount that continues to jeopardize the
housing market’s recovery. Nevertheless, Fannie and Freddie are
looking to rid themselves of a large percentage the shadow
inventory they do have — and quickly. Earlier this month, the
Federal Housing Finance Agency (FHFA), the Treasury Department
and the U.S. Department of Housing and Urban Development were
seeking suggestions on how to dispose all the repossessed homes
now owned by Fannie Mae, Freddie Mac and the Federal Housing
Administration in a way that would benefit local communities.