Click here for assistance facilitating a Short Sale or Foreclosure 

We Short Sale in San Diego County

Short Sale La Jolla Short Sale Santee Short Sale Imperial Beach Short Sale Lakeside Short Sale Poway Short Sale Del Mar Short Sale Jamul Short Sale Rancho Santa Fe Short Sale Solana Beach Short Sale Cardiff By The Sea Short Sale Alpine Short Sale Encinitas Short Sale Escondido Short Sale Dulzura Short Sale Carlsbad Short Sale Ramona Short Sale San Marcos Short Sale Tecate Short Sale Vista Short Sale Descanso Short Sale Potrero Short Sale Oceanside Short Sale Guatay Short Sale Camp Pendleton Short Sale Valley Center

HAFA

February 28, 2010 By

From David Streitfeld at the NY Times: U.S. Housing Aid Winds Down, and Cities Worry

Streitfeld discusses the Fed’s MBS purchase program (95% complete and scheduled to end next month), the housing tax credit (contracts must be signed by the end of April, and deals closed by the end of June), and the slight tightening of FHA requirements.

Here is a list compiled in December of many Government housing support programs. Some have already ended (like the extension of the HAMP trial mods on Jan 31, 2010), and, as Streitfeld noted, others will end over the next few months.

One program that is being ramped up is Home Affordable Foreclosure Alternatives (HAFA: short sales and deed-in-lieu) that starts on April 5, 2010.

A few stories of interest …

  • Press Release: Citi to Pilot Foreclosure Alternatives Program to Help Distressed Borrowers

    In exchange for the deed on their property, CitiMortgage will allow borrowers to stay in their homes for a period of up to six months. At the end of the six months, the borrower will turn over the property deed to CitiMortgage, and CitiMortgage will provide a minimum of $1,000 in relocation assistance to the borrowers. Citi will also provide relocation counseling by trained professionals and will cover certain monthly property expenses if Citi determines that the borrower can no longer afford them. Payment of utilities costs will be the responsibility of the borrower. Other costs incurred by the borrower, such as homeowner’s association and escrow fees, will be determined on a case-by-case basis considering the borrower’s specific financial circumstances. As part of the agreement, borrowers must maintain the property in its current condition and agree to bi-monthly meetings during which trained relocation professionals will help the borrower prepare for the next chapter of their lives.

    This is a pilot program, but this is part of the short sale / deed-in-lieu movement that will be a huge story this year. This is being driven by the Treasury’s HAFA program – and this is why I think foreclosures will be down in 2010, but total distressed sales up. Although Citi doesn’t mention it, HAFA requires a full release of the debt and waiver of all claims against the borrower.

  • The TARP Congressional Oversight Panel put out a report today on Commercial Real Estate (CRE): Commercial Real Estate Losses and the Risk to Financial Stability. This isn’t anything new, but it provides a good overview of the CRE issues.
  • On Greece. As expected there was a political announcement of support today, but few details. From the NY Times: Europe Commits to Action on Greek Debt

    European leaders … promised “determined and coordinated action” to safeguard the euro as they sought to persuade jittery bond market investors that Greece would not be allowed to default on its government debt.
    …
    Further work by finance ministers on assistance for Greece, and the conditions that would be attached to any aid, will take place early next week.

    • Filed Under: Uncategorized Tagged With: , , , , , , , , , , , , , , , , , , ,

    Loan Modification Scams – FTC Stepping In to Stop Loan Mod Scam Artists

    September 17, 2009 By

    With so many loan modification scams, particularly in San Diego and Orange County, and for that part the rest of the nation, the FTC is considering banning the collection of up-front fees to stop loan modification scam artists from stealing people’s money.  There are a lot of legitimate loan mod companies operating, but there are also many loan mod businesses that collect up front fees that are 100% legitmate and can get the job done.

    Our philosophy is that we will not take on a client that will not qualify for a loan modification.  We have a strict pre-approval process that we go through before moving forward with any client. If we don’t think we can get your loan modification through, then we will not take you on as a client. Why waste your time and ours!  If we don’t think you can qualify for a loan modification, then we will steer you into another direction such as a forensic loan audit or a short sale.

    Call us today if you need guidance on what to do: 1 (619) 631-4546.

    See below for the complete article on stopping loan modification scams at the federal level.

    FTC Considering Ban on Up Front Fees For Loan Modification: Stop the Scams

     FTC considering ban on upfront payments for loan help; FTC files charges against 2 firms in San Diego and Orange County

     By Alan Zibel, AP Real Estate Writer

    On Thursday September 17, 2009, 12:02 pm EDT

     WASHINGTON (AP) — The head of the Federal Trade Commission said Thursday the agency is considering banning upfront payments to companies that advertise help for borrowers who are in trouble on their home loans.

     Government officials say scammers seeking to take advantage of borrowers in danger of default often charge upfront fees of $1,000 to $10,000 for help with loan modifications that rarely, if ever, pay off.

    The FTC announced it filed civil charges against two companies, San Diego-based Nations Housing Modification Center and Infinity Group Services of Orange County, Calif.

     The government accused both companies of charging homeowners large fees for assistance in working with their lenders, but doing “little or nothing” to actually help borrowers.

     Leibowitz said the FTC was also considering restrictions on how mortgage rescue companies can advertise their services. Ads for loan modification companies frequently appear on late-night TV and on billboards in some parts of the country. Nations Housing, for example, mailed homeowners official-looking letters purporting to be from an address on Pennsylvania Avenue in the nation’s capital.

     They were designed to trick consumers into thinking that they were participating in a government program, regulators said.

     The government has filed charges against 22 companies operating such schemes and say the firms often have names or ads designed to make borrowers think they are using the Obama administration’s efforts to help modify or refinance millions of mortgages.

     Authorities emphasized that help is available for free from government-approved housing counselors.

     On Thursday, 12 state attorneys general met with U.S. Attorney General Eric Holder, Treasury Secretary Timothy Geithner and Housing and Urban Development Secretary Shaun Donovan to discuss their anti-fraud operations.

     ”A lot of these scams operate nationwide, from outside our borders,” said Connecticut Attorney General Richard Blumenthal.

    Filed Under: Loan Modification, Uncategorized Tagged With: , , , , , , , , , , , , , , , , , , , , , ,

    Unemployment Now Becoming A Principal Reason for Rising Foreclosures

    September 5, 2009 By Leave a Comment

    unemploymentResearch by Moody’s Economy.com predicts that in 2009 1.8 million borrowers will lose their home to foreclosure.  This figure rises from 1.4 million homeowners in 2008.  Moody is a leading independent provider of economic, financial, country, and industry research.  Moody attributes the increase in foreclosure rate to the rise in unemployment. At the start of the housing crisis in 2007, the unemployment rate was about 4.6%. Last month it reached 9.4%.  Many believe it reach 10% by the end of the year.  This unemployment figure does not account for those self-employed individuals unable to collect unemployment, those that have a reduced wage, and those that have not given up. Other experts believe the true unemployment figure to reach closer to 15%.  In San Diego unemployment is predicted to hover around 11-12%

     As the start of the housing crisis, homeowners that had subprime loans were the first to lose their homes.  Now unemployment is the biggest factor driving foreclosures today.  ”It’s a much harder nut to crack, unemployment,” said Mark Calabria, director of financial regulation studies at the Cato Institute. “It’s much easier to bash lenders than to create jobs.” 

     In the first quarter of 2009, the prime loans rather than subprime loans accounted for the largest share of foreclosures. This shift is due almost entirely due to unemployment. Hope Now, a group of mortgage lenders backed by the government, has established a committee to look at how to best help unemployed homeowners facing foreclosure. One strategy involves creating new types of loan modifications. “We are going to be seeing more foreclosures because of prolonged unemployment,” said Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee. “These are people who weren’t in trouble and wouldn’t be in trouble if they hadn’t lost their job.”  The government has yet to reveal what this new type of loan mod would entail.

    Filed Under: Debt Crisis, Loan Modification, Real Estate Educational Materials, Uncategorized Tagged With: , , , , , , , , , , , , , , , , , , ,