Las Vegas Real Estate Fact and Fiction

Join us at the next FREE Short Sale Seminar

noreply@blogger.com (Dulcie Crawford) — Mon, 08 Aug 2011 23:35:00 +0000

80% of Las Vegas Homeowners are Underwater.

Do You Have a Fool-Proof STRATEGY to Keep You & Your Assets from Sinking?

What do you do in a real estate market like this? Do you hold on to your property that’s slowly sinking away, or do you take action now and prevent further loss? What strategies can you employ to save what you can?

The Dulcie Crawford Group is hosting a FREE informative seminar on Saturday, August 27th, 1:30 to 3:00 PM to discuss viable strategies that can help you. As a Nevada property owner, you’re probably in the same situation as 80% of the population.

Are you thinking of walking away because you think there is no other way out? You have questions, we may have the answers. There are options! Before you do anything, give us a chance to show you how WE CAN HELP.

Get answers from the experts who can help!

Dulcie Crawford—Realtor, 13 years professional experience, Las Vegas native, Short Sale/Foreclosure Resource Specialist, Top Producer in Short Sale & Distressed Properties
Atty. Robert Noggle, ESQ, Noggle Law PLLC – One of NV’s Foremost Law Firms in Real Estate Short Sale Negotiation
Atty. Martin Prybylski, ESQ, Robertson & Benevento – One of NV’s Highly Experienced Bankruptcy Attorneys
A Representative from Gary Fales & Associates—One of NV’s Top Legal Firms in Asset Trust Protection
Bryce Reynolds, Senior Mortgage Specialist, All Western Mortgage Inc.—Industry veteran with almost 20 years experience.

Among the topics to be covered are:

Loan Modification —Solution or Myth?
Short Sale Strategies that Lead to a Deficiency Release
How to Walk Away from Debt But Still Protect Your Assets
Your Credit After A Short Sale, Foreclosure or Bankruptcy
Asset Trust Protection— why you need to have one to protect your family
Do you need legal representation? We have partnered with a leading short sale and asset protection attorneys to offer you FREE consultation.

Please visit our sign-up page to register for this event. If you have any questions or need help signing up, contact us at 702-285-1990, 702-588-6842 or email DulcieCrawford@gmail.com. Please feel free to forward this email to anyone who you think can benefit from this seminar. We look forward to seeing you there!

Foreclosure Rates Decline on Both Quarterly, Annual Basis

noreply@blogger.com (Dulcie Crawford) — Mon, 08 Aug 2011 23:29:00 +0000

You’ve probably heard or read it: foreclosure rates have declined for the last quarter and compared to last year’s. But what do those numbers really mean? Below is a straightforward article from one of our title companies. Please feel free to pass this along to your friends and family.

Please note: these statistics are national averages. The numbers for the Las Vegas area are not typical of the national rate. Feel free to call our office for up-to-date reports for foreclosures and sales in our local market and we would be happy to send you the latest figures.

The number of foreclosure filings for the second quarter of this year was the lowest reported since the fourth quarter of 2007, according to RealtyTrac’s Midyear 2011 Foreclosure Market Report released Thursday.

All categories of foreclosures showed decreases on both a quarterly and annual basis. Totaling 608,235 for the quarter, foreclosure filings showed an 11 percent decrease from the first quarter of the year and a 32 percent decrease from the second quarter of 2010.

The total number of foreclosure filings for the first half of 2011 was 1,170,402, demonstrating a 25 percent decrease from the previous six months and a 29 percent decrease from the first half of 2010.

According to RealtyTrac, 0.9 percent of all U.S. housing units received at least one foreclosure filing in the first six months of 2011. Monthly foreclosure filings for the month of June totaled 222,740, a 4 percent increase from May and a 29 percent decrease from June 2010.

June marked the ninth consecutive month in which foreclosure activity declined on a year-over-year basis. However, June showed month-over-month increases in default notices, scheduled auctions, and REOs.

While declining foreclosure filings might ignite encouragement, RealtyTrac CEO James J. Saccacio warns these numbers might not point to improvements in the market. “Unfortunately, with unemployment rates inching back up, consumer confidence weak and home sales and prices continuing to languish, this doesn’t appear to be the case,” Saccacio says.

Saccacio estimates that due to processing and procedural delays, up to 1 million foreclosure actions that should have taken place this year, will be delayed until 2012 or later. “This casts an ominous shadow over the housing market, where recovery is unlikely to happen until the current and forthcoming inventory of distressed properties can be whittled down to a manageable number” Saccacio says.

While Nevada, at 5 percent, ranked highest in the nation in terms of foreclosure rate, California showed the highest total number of filings at 263,500. Arizona ranked second in states with highest foreclosure rates at 2.82 percent, while also ranking third in terms of total foreclosure filings with 77,525 for the first half of the year. Florida had the second-highest number of foreclosure filings at 113,641. Other states ranking in the top 10 for total foreclosure filings included Michigan (61,005), Georgia (60,870), Illinois (60,636), Texas (55,442), Nevada (53,217), Ohio (44,419), and Colorado (25,744).

In addition to Nevada and Arizona, states ranking in the top 10 for foreclosure rates were California (1.96 percent), Utah (1.65 percent), Georgia (1.50 percent), Idaho (1.49 percent), Michigan (1.34 percent), Florida (1.28 percent), Colorado (1.19 percent), and Illinois (1.15 percent).

The average number of days a U.S. property spent in the foreclosure process in the second quarter of 2011 was 318, showing an increase from both the first-quarter average of 298 days, and from the average reported for the second quarter of 2010, 227 days.

The foreclosure process spanned the highest number of days in New York at 966 days on average, followed by New Jersey with 944 days and Florida with 676 days. Foreclosures took the least amount of time in Texas, only 92 days on average, and Virginia, where foreclosures averaged 106 days.

The average number of days from foreclosure to sale for REOs sold in the second quarter of 2011 was 178, a slight increase from the first-quarter average of 176 and from the average in the second quarter of 2010, which was 164 days.

U.S. properties in foreclosure that sold in the second quarter of 2011 averaged 213 days from the start of the foreclosure process to the sale, a decrease from the 228 day average in the first quarter of 2011 and increase from the 195 day average in the second quarter of 2010.

But wait! Foreclosure doesn’t have to be your only recourse! Have you thought about short sale? The Dulcie Crawford Group is conducting a FREE educational seminar that will discuss this and other possible strategies, on Saturday, August 27th, 1:30 PM. More information can be found at our website.

Please sign-up here.

NV Legislative Updates That You Should Know

noreply@blogger.com (Dulcie Crawford) — Tue, 19 Jul 2011 23:51:00 +0000

The 76th Legislative Session adjourned on June 7th, and we want to share with you some of the more important bills that concern the real estate industry and therefore, may affect you as a property owner.

AB273 – Passed/Became Law
NRS 40.455 states that the holder of a mortgage can sue to collect a deficiency within 6 months after the foreclosure sale or trustee sale. The new law, AB 273, states that a holder of a second mortgage must sue within 6 months for deficiencies resulting from a foreclosure sale, trustee sale, short sale or deed in lieu of foreclosure. This is how the laws work together:

First mortgage loans – Deficiency collection lawsuits must be filed within six months after a foreclosure sale.
First mortgage loans – Deficiencies can only be collected on first loans taken out BEFORE October 1, 2009. First loans taken out after that date are non-recourse loans.
Second mortgage loans – Some collection lawsuits must be filed within six months. The six month limit on deficiency collections only applies to foreclosure sales, trustee sales, short sales and deeds in lieu of foreclosure that are sold or have sales closed AFTER July 1, 2011.
Second Mortgage loans – Deficiencies can only be collected on second loans taken out BEFORE June 10, 2011. Second loans taken out after that date are non-recourse loans.

Note: New laws do not impact First mortgage loans for short sales – unless the deficiency judgment is successfully negotiated in the short sale, the lien holder has 6 years to pursue a deficiency judgment after a short sale.

SB 414 – Passed/Became Law

This bill does two main things:

It prohibits a banking or other financial institution from unreasonably delaying its response to an offer for a short sale on real property secured by a residential mortgage loan. It makes it a misdemeanor for the bank to unreasonably withhold short sale approval, and spells out that acceptance or rejection of an offer should be received within 90 days.
It also prohibits a bank from getting a deficiency judgment if they agreed to a short sale (under certain circumstances). Personally, I am not sure how this can be enforced against out of state banks, etc., but knowing that the law is there could potentially speed up the short sale process.

SB403 will make sure the Demand Letter from the HOA is good for 15 days. It also provides for noticing provisions if the demand changes within the 15-day timeframe.

FOR ALL OF US: DON’T TEXT AND DRIVE!
SB140 prohibits the use of a cell phone effective July 1, 2011 without the use of a hands free devise. You cannot text, IM, or browse the internet. This is considered a primary offense meaning you can be pulled over and cited. Warnings will be given until January 1, 2012 when they will begin issuing citations. So go get that hands-free gadget if you don’t have one already, and no more texting while driving!

This recap was provided by the Nevada Association of Realtors, (NVAR), which provides services to 15,000 REALTORS® throughout Nevada. NVAR is invested in the success of its members by providing services and advocating for private property rights.

80% of Las Vegas Homeowners are Underwater. What can you do to protect yourself and your assets?

noreply@blogger.com (Dulcie Crawford) — Sat, 11 Jun 2011 00:47:00 +0000

Find out at the next FREE power-packed educational seminar that The Dulcie Crawford Group is hosting on Saturday, June 18, 10:30 AM. The seminar will also look into what the future holds for Las Vegas’ real estate market. As a Nevada property owner, you’re probably in the same situation as 80% of the population. Is Bankruptcy the safest and only option for you to dispose of a poor real estate investment? Are you thinking of walking away because you think there is no other way out? There are other options! You need the right strategies that give you all the alternatives available to you to get rid of an inopportune investment. Before you do anything, give us a chance to show you how WE CAN HELP.

Perhaps, finding out more about these other topics will benefit you too:

Loan Modification — Solution or Myth?
Short Sale Strategies that Lead to a Deficiency Release
How to Walk Away from Debt But Still Protect Your Assets
Asset Trust Protection—why you need to have one to protect your family
2011 Changes to the Government Aid Programs like HAMP and HAFA
Do you need legal representation? We have partnered with a leading short sale attorney to offer you consultation fee for as little as $200

This power-packed presentation will be conducted by some of the industry’s leading resources for Nevada real estate. Get the facts straight from the experts who can help!

Dulcie Crawford—Realtor, 13 years professional experience, Las Vegas native, Short Sale/Foreclosure Resource Specialist, Top Producer in Short Sale & Distressed Properties
Atty. Carlos McDade, ESQ, Black & Lobello – One of NV’s Foremost Law Firms in Real Estate Short Sale Negotiation and Asset Protection Laws
Atty. Martin Prybylski, ESQ, Robertson & Benevento – One of NV’s Highly Experienced Bankruptcy Attorneys

This is an event you don’t want to miss. Please mark your calendars:

Saturday, June 18th, 10:30 AM – 12:30 PM

Realty One Group Seminar Room

9089 S. Pecos Road Suite 3400, Henderson.

RSVP by June16 to reserve your seat at: http://dulciecrawford.com/ShortSaleSeminar.ubr.

Remember: It doesn’t cost you anything to attend but it can very well give you the much needed professional guidance you need so you can make the best decision. Please feel free to pass along this information to a family, friend or neighbor who you think can also benefit from it. If you have any questions or need help signing up for the seminar, please contact us at: 702.588.6842, 702.285.1990, or dulciecrawford@gmail.com.

National Open House Weekend on June 4 & 5 Aims to Rally Real Estate Market

noreply@blogger.com (Dulcie Crawford) — Sat, 04 Jun 2011 00:30:00 +0000

The National Association of Realtors, in partnership with the Greater Las Vegas Association of Realtors and the Las Vegas Review Journal, is scheduled to hold the Nationwide Open House Weekend on June 4 & 5. This is a WIN-WIN situation for both buyers and sellers as all sectors in the real estate market are involved to rally the still sluggish housing environment. Summer is usually a busy time for buying and selling and we hope to kick start the season with this event.

Why should buyers participate in Open House Weekend?

Reason #1: Open House Weekend is a great opportunity for buyers to shop for anew home from a wide selection of homes while interest rates are still low and affordability is at an all-time high. After all, most economists say that it's not a matter of "if" mortgage rates will go up, it's "when."

Reason #2: REALTORS® are opening the doors to home ownership by simplifying the house-hunting process. Open House Weekend is a time-saver by offering buyers a convenient way to visit a large number of homes in a short period of time.

Reason #3: This event offers buyers the chance to see REALTORS® in action. Open House Weekend is fantastic way for buyers to find an approachable, knowledgeable expert that can help them navigate the home purchasing process.

Buyers: Map out your open house route! www.lvrj.com/realestate . You can also check out the list of properties that are open here: http://www.lasvegasrealtor.com/openhouse

Why should sellers participate in Open House Weekend?

Reason #1: Open House Weekend is a tremendous opportunity for sellers to get their properties noticed. This event is designed to give sellers the chance to showcase their homes and, as a result, draw the attention of prospective buyers.

Reason #2: This event is a unique way for sellers to find out more about their local markets. Open House Weekend will allow sellers to see first-hand comparable homes for sale. This will provide insight on many other aspects of a real estate transaction, including ways to improve marketability of their homes.

Reason #3: It's not just potential buyers who will attend Open House Weekend. Other REALTORS®, who can provide valuable feedback on a home and its staging, will participate in the event.

Sellers: Prepare your home! www.LasVegasREALTOR.com/openhouse

We fully support this cause and are holding open houses in these homes:

2537 Sundew Ave, Henderson: www.DulcieCrawford.com/92
3105 Cori Rosso Ln, Las Vegas: www.DulcieCrawford.com/102
357 Silverado Pines Ave, Las Vegas: www.DulcieCrawford.com/88

If you have any questions or wish to see any of the homes this weekend, please give us a call at 702-285-1990 or email DulcieCrawford@gmail.com

FREE EDUCATIONAL WORKSHOP ON Saturday, May 14

noreply@blogger.com (Dulcie Crawford) — Wed, 11 May 2011 00:00:00 +0000

UNDERWATER? THINKING OF SHORT SELLING YOUR HOME?
We are a few days away from this highly informative real estate workshop that The Dulcie Crawford Group is hosting, together with two of Nevada's foremost attorneys in short sale representation and asset protection and trust law.

Among the topics to be covered are:

Loan Modification — Solution or Myth?
Successful Strategies to Negotiate with the Bank on Your Mortgage
How to Walk Away from Debt But Still Protect Your Assets
Short Sale Strategies that Lead to a Deficiency Release
2011 Changes to the Government Aid Programs like HAMP and HAFA
Do you need legal representation?
Asset Trust Protection—why you need to have one to protect your family

Mark your calendars:

Saturday, May 14, 10:30 AM to 12:30 PM
Realty One Group Seminar Room
9089 S. Pecos Rd Suite 3400, Henderson, NV

Please share this event with your family and friends who you think might benefit from the wealth of information that will be presented FREE OF CHARGE during the seminar.

To register, simply visit http://dulciecrawford.myubertor.com/ShortSaleSeminar.ubr

We hope to see you at the event!

Read This If You Need More Time to Pay Your Taxes

noreply@blogger.com (Dulcie Crawford) — Thu, 14 Apr 2011 23:49:00 +0000

We are reprinting this tax tip from the Internal Revenue Service’s website (http://www.irs.gov/). If you have questions related to your (tax) filing scenario, please contact a qualified tax professional. If you need a referral to one, please contact us at 702-588-6842 or 702-285-1990, or email dulciecraword@gmail.com.

IRS Tax Tip 2011-64, March 31, 2011

Taxpayers who owe taxes may be relieved to know that there are some options for those who owe and can’t afford to pay the full amount right away.

Here are the top 10 things the IRS wants you to know if you need more time to pay your taxes.

Taxpayers who are unable to pay all taxes due are encouraged to pay as much as possible. By paying as much as possible now, the amount of interest and penalties owed will be less.

Based on the circumstances, a taxpayer could qualify for an extension of time to pay, an installment agreement, temporary delay or an Offer in Compromise.
If you cannot pay the full amount, taxpayers should immediately call the number or write to the address on the bill they receive.
You may want to consider financing the full payment of your tax liability through a loan. The interest rate and fees charged by a bank or credit card company are usually lower than interest and penalties imposed by the Internal Revenue Code.
If you cannot pay in full immediately, you may qualify for a short amount of additional time, up to 120 days, to pay in full. No fee is charged for this type of payment arrangement and this option may minimize the amount of penalties and interest you incur.
You may also want to consider an installment agreement. This arrangement allows you to make monthly payments after a one-time fee of $105 is paid. If you choose to pay through a Direct Debit from your bank account, the fee is reduced to $52. Lower-income taxpayers may qualify for a reduced fee of $43.
To apply for an installment agreement you can use the Online Payment Agreement application available on the IRS website; file a Form 9465, Installment Agreement Request; or call the IRS at the telephone number shown on your bill.
In some cases, a taxpayer may qualify for an offer in compromise, an agreement between the taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement.
Even if you set up an installment agreement, the IRS may still file a Notice of Federal Tax Lien to secure the government’s interest until you make the final payment.
It is important to respond to an IRS notice. If you do not pay your tax liability in full or make an alternative payment arrangement, the IRS is entitled to take collection action.

More information on the collection process is available at http://www.irs.gov.

Links:

• Payment Options - Ways To Make a Payment
• Other Ways to Resolve Tax Debt That Could Save You Money
• Online Payment Agreement Application
• Form 9465, Installment Agreement Request
• Publication 966, The Secure Way to Pay Your Federal Taxes
• Publication 594, The IRS Collection Process

House Panel Votes to End Two Foreclosure-Prevention Programs

noreply@blogger.com (Dulcie Crawford) — Tue, 22 Mar 2011 00:21:00 +0000

Last week, the House Financial Services Committee approved two bills that would terminate two foreclosure-prevention programs. The panel passed by a 32-23 vote legislation (H.R. 839, “HAMP Termination Act”) that would end the Home Affordable Modification Program that offers incentives for lenders to modify troubled borrowers’ mortgage loans, in the wake of serious concerns about the program’s effectiveness and cost. H.R. 839 would amend the Emergency Economic Stabilization Act of 2008 to terminate the authority of the Secretary of the Treasury to provide new assistance under the Home Affordable Modification Program, while preserving assistance to homeowners who were already extended an offer to participate in the Program, either on a trial or permanent basis.

HAMP has suffered from myriad problems since its launch in February 2009, including low enrollment and high rates of re-default on modified mortgages. House Rep. Patrick McHenry (R-NC), who introduced the bill, has called the program an “epic failure”. The ranks of supporters of the bill are thinning, even among Democrats, a group of whom recently sent a letter to Vice-President Biden urging immediate action to help struggling homeowners, and calling efforts to date “inadequate” and a “critical problem”. Growing dissatisfaction with HAMP on both sides of the aisles suggest that the bill could possibly garner passage even in the Senate, where Democrats maintain a slim majority. The White House has threatened a veto of all bills that terminate emergency loan and mortgage modification measures.

The committee also approved by a 31-24 vote a bill (H.R. 861) that would terminate the Neighborhood Stabilization Program that provides money for state and local governments to help clean up blighted properties and redevelop them. The NSP has received $6 billion to enable state and local governments to purchase and either rehabilitate or destroy distressed properties in their jurisdictions. Local governments in areas hard-hit by foreclosures claim that the program helps them to cope effectively with the fallout from the housing downturn, which has left thousands of homes empty and prone to vandalism, squatters and blight. Critics of the NSP have claimed that the program fails to address the needs of troubled homeowners, and incentivizes banks and property owners to “dump” distressed properties onto taxpayers.

In related news, on March 10th, the House also voted on legislation H.R. 830, the Federal Housing Assistance (FHA) Program Termination Act that would end the FHA Refinance Program that enables underwater borrowers to refinance into less-costly Federal Housing Administration-insured mortgages. It is scheduled to go to the Senate soon; however, the Obama administration is opposed to the passage of the bill and according to the White House’s official website, “If the President is presented with H.R. 830, his senior advisors would recommend that he veto the bill.” You can read the statement here: http://www.whitehouse.gov/sites/default/files/omb/legislative/sap/112/saphr830h_20110308.pdf

The House also passed bill H.R. 836, the Emergency Mortgage Relief Program Termination Act. This program was created to help homeowners who have lost jobs to continue making mortgage payments. The bill now goes on to be voted on in the Senate. Keep in mind that debate may be taking place on a companion bill in the Senate, rather than on this particular bill. You can read the full text of the bill here: http://www.gpo.gov/fdsys/pkg/BILLS-112hr836eh/pdf/BILLS-112hr836eh.pdf

All these legislation will greatly impact the housing recovery initiatives that we as Realtors support. To find out how these changes will affect you either as a seller or buyer, contact us today at 702-285-1990.

New Home Affordable Foreclosure Alternatives (HAFA) Changes for 2011

noreply@blogger.com (Dulcie Crawford) — Tue, 22 Mar 2011 00:19:00 +0000

As a follow-up to the previous blog’s topic on the updated guidelines for the Home Affordable Foreclosure Alternatives (HAFA) program issued by the Treasury Department recently, below is a more comprehensive discussion of what these new guidelines are and how it may affect thousands of homeowners across the country. This is particularly helpful to those who are “underwater” and can give the necessary clarity as to what steps one can do if they owe more than what their properties are worth and have lost a job or is experiencing financial difficulty.

Here are important excerpts from the supplemental directive and the reason for its issuance:

In December 2010, Treasury issued version 3.0 of the Making Home Affordable Program Handbook for Servicers of Non-GSE Mortgages (Handbook), a consolidated resource for guidance related to the MHA Program for mortgage loans that are not owned or guaranteed by Fannie Mae and Freddie Mac (Non-GSE Mortgages).

This Supplemental Directive provides policy enhancements to HAFA and amends and supersedes the notated portions of the Handbook. This Supplemental Directive is effective February 1, 2011; however, servicers may begin to implement the changes outlined in this Supplemental Directive immediately. By February 1, 2011, servicers must make appropriate updates, consistent with investor guidelines, describing the basis on which the servicer will offer HAFA to borrowers (HAFA Policy) and ensure that all potentially eligible borrowers are evaluated and treated consistently.

Servicers that have executed a servicer participation agreement and related documents (SPA) must follow the guidance set forth in this Supplemental Directive. This guidance does not apply to first lien mortgage loans that are owned or guaranteed by Fannie Mae or Freddie Mac, or insured or guaranteed by a federal agency, such as the Federal Housing Administration, Veterans Administration or the Department of Agriculture’s Rural Housing Service.

Here are the highlights of the supplemental directive that would be of benefit to homeowners:

Monthly Gross Income: HAFA no longer requires servicers to determine if the borrowers monthly payment is higher than a 31 percent debt-to-income ratio. Servicers must continue to verify the borrower’s hardship by obtaining a signed Hardship Affidavit or Request for Modification and Affidavit (RMA). Notwithstanding the foregoing, each servicer may include a requirement in its HAFA Policy that borrowers provide updated financial information to evaluate the borrower.

Vacant Property: To be considered for HAFA, the property currently must be or recently must have been the borrower’s principal residence. A property that has been vacant or rented to a non-borrower for not more than 12 months prior to the date of the Short Sale Agreement (SSA), Alternative Request for Approval of Short Sale (Alternative RASS) or DIL agreement (DIL Agreement) is eligible for HAFA, so long as the borrower provides documentation that the property was such borrower’s principal residence prior to relocation and such borrower has not purchased a one- to four-unit property during the 12-month period prior to the date of the SSA, Alternative RASS or DIL Agreement. The borrower’s reason for relocation does not need to be connected to re-employment or transfer of employment. Also, there is no longer a minimum distance requirement. Servicers are not required to verify the number of miles the borrower moved from the property.

Release of Subordinate Liens: HAFA no longer requires second-lien holders to agree to accept 6 percent of the unpaid principal balance owed them, up to $6,000. Servicers now decide who gets paid how much, with a cap still at $6000.

Timing for Issuance of Short Sale Agreement: HAFA now requires borrowers seeking a short sale get an answer/agreement within 30 days. If an unsolicited borrower requests consideration under HAFA, the servicer must evaluate the borrower’s eligibility and, if eligible, complete and send the borrower an SSA no later than 30 calendar days from the date of the borrower’s request.

Timing for Response to Alternative Request for Approval of Short Sale: No later than 30 calendar days from the date of receipt from the borrower of an executed sales contract, Alternative RASS, and a signed Hardship Affidavit or RMA, the servicer must communicate approval or disapproval of the sale or provide a counter offer on the Alternative RASS.

Real Estate Brokerage Commissions: The real estate commission that may be paid shall be the amount indicated in the listing agreement between the borrower and the listing broker, provided that such commission shall not exceed six percent of the contract sales price. When the servicer has retained a contractor to assist the listing broker with the transaction, the servicer must include a statement in the SSA that any associated vendor fees will not be charged to the borrower or deducted from the real estate commission.

With respect to Alternative RASS transactions, when the servicer has retained a contractor to assist the listing broker with completion of the transaction, the servicer must include a statement in the Alternative RASS form that any associated vendor fees will not be charged to the borrower or deducted from the real estate commission.

Alternative Deed-in-Lieu Programs: DIL Agreements between servicers and borrowers that provide an option for the borrower to continue to occupy the property on a rental basis (deed-for-lease) or provide an opportunity for the borrower to repurchase the property at some future time are also eligible for financial incentives under HAFA, so long as all other program requirements are met. At the discretion of the servicer in accordance with investor guidelines, the borrower relocation incentive may be paid either upon the successful closing of the DIL or at a future time when the borrower vacates or repurchases the property. Servicers offering programs of this type must include program descriptions and conditions in their HAFA Policy.

Conditional DIL agreements that allow a borrower to reinstate the original loan following some period of rental occupancy are not eligible for HAFA incentives unless and until the DIL is final and the borrower no longer has the option of reinstating or modifying the original first mortgage lien.

Borrower Notices: When a borrower who was not previously evaluated for HAMP requests a short sale or DIL, and the servicer determines that the borrower meets the HAMP eligibility requirements and will be solicited for HAFA, the servicer must notify the borrower verbally or in writing of the availability of HAMP and allow the borrower 14 calendar days from the date of the notification to contact the servicer by verbal or written communication and request consideration for HAMP. This Supplemental Directive clarifies that this notification may be given simultaneously with the servicer’s consideration of the borrower for HAFA.

Retroactivity: Servicers are not required to implement the terms of this Supplemental Directive as to any loan that has been reported via the HAMP Reporting Tool or for any loan as to which a borrower has been determined to be ineligible for HAFA. Notwithstanding the foregoing, servicers may re-evaluate borrowers previously determined to be ineligible for HAFA using the guidance in this Supplemental Directive. Each servicer’s HAFA Policy must contain a written policy that describes the basis on which the servicer will re-evaluate such borrowers under HAFA.

You can read the full text of the HAFA Supplemental Directive here:
https://www.hmpadmin.com/portal/programs/docs/hafa/sd1018.pdf

If you have any questions or need clarification on eligibility and program rules, we would be happy to sit down with you for a no-obligation consultation. Please contact us at 702.285.1990, 702.588.6842 or dulciecrawford@gmail.com.

WINTER PREP TO KEEP COSTS DOWN

noreply@blogger.com (Dulcie Crawford) — Sun, 28 Nov 2010 01:00:00 +0000

As the temperatures continue to dip, we want to share these tips to ensure that your home is prepared for the cold days ahead. The article below is courtesy of RIS Media, one of the leading information sources for real estate.

Fall is the perfect time for homeowners to ensure their house is prepared for winter weather. A home should be winterized so it will be able to sustain damage severe weather may bring. Additionally, if a house is winterized and damages do occur, the homeowners insurance policy will cover the house against the weather damage. HomeownersInsurance.net offers advice so people can prepare for winter weather and help avoid potential costly issues.

Homeowners must first inspect their house thoroughly so that possible issues can be avoided. The most important interior areas are the furnace and fireplace. HVAC professionals can inspect the furnace and clean out the ducts. Furnace filters should be replaced on a monthly basis to keep ducts clean. Any flammable materials around the furnace should be removed.

If there is a hot-water radiator, the valves need to be opened slightly to bleed. When water is seen, they can be closed. If propane is used in the home, the tank will need to be filled. These should all be inspected to be sure they are working properly.

If there is a fireplace in the house, the screen or cap on the top of the chimney should be secure to keep out any birds, squirrels or rodents. The chimney should be cleaned by a professional occasionally because buildup of soot can cause fires. The damper should open and close properly and the mortar between the bricks should not be cracked. Any cracks should be fixed so heat does not seep into areas it should not be, creating a fire hazard.

The next step in preparing for winter for safety and insurance purposes is to examine the exterior. Damage may not be evident immediately during winter months, and may only be noticed with the first spring rain. The doors and windows should be checked for cracks, and then fixed. If the homeowner has a basement, shields can be placed over the window wells for protection from snow melt. Any worn shingles or roof tiles should be replaced so melted snow does not seep into weak areas. Gutters and downspouts should also be unclogged and leaf guards should be installed. Debris should then be cleared from the foundation to look for further cracks to repair.

OBAMA ADMINISTRATION RELEASES OCTOBER HOUSING SCORECARD

noreply@blogger.com (Dulcie Crawford) — Thu, 11 Nov 2010 00:30:00 +0000

Below is a recent press release from The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury on the latest Housing Scorecard under the Obama administration. The latest housing figures show continued signs of stabilization in house prices and high home affordability due in part to record low interest rates. The housing scorecard is a comprehensive report on the nation’s housing market.

We like to share this piece of good news because as an active Realtor, I continue to be hopeful that the housing market improves. I have served many clients through high and low times and certainly, this challenging environment is something we haven’t seen before, but I believe is nothing insurmountable.

You can view previous housing scorecards here: http://portal.hud.gov/portal/page/portal/HUD/initiatives/Housing%20Scorecard

Here is the complete report for October:

“Over the last 21 months, the Obama Administration’s swift action in the housing market has kept millions of families in their homes and provided responsible borrowers with incentives to refinance or to become a homeowner,” said HUD Assistant Secretary Raphael Bostic. “But, with many unavoidable foreclosures still in the pipeline, it’s clear that we have a hard road ahead. That’s why we’re focused on successfully implementing the programs we’ve put in place – such as additional assistance on refinancing and helping unemployed homeowners stay in their homes – and ensuring that help is available to homeowners as soon as possible.”

“HAMP is not only an important part of the Administration’s efforts to stabilize the housing market, it has also redefined the loan modification standard for the mortgage industry overall. That has led to more than 3.5 million modification arrangements directly benefitting families in communities across the country still healing from the crisis," said acting Assistant Secretary for Financial Stability Tim Massad. "Early data shows that well beyond the trial phase, the majority of homeowners are maintaining their HAMP modifications, reflecting the rigorous standards the program uses to provide assistance to responsible homeowners.”

The October Housing Scorecard features key data on the health of the housing market including:

Families continued to benefit from the lowest rates in history on 30-year fixed mortgages. Since April of 2009, record low interest rates have helped more than 7.1 million homeowners to refinance, resulting in more stable home prices and $12.7 billion in total borrower savings.
As expected with the expiration of the Homebuyer Tax Credit, new and existing home sales remained below levels seen in the first half of 2010. At the same time, home prices remained level in the past year after 33 straight months of decline and homeowners added $95 billion in home equity in the second quarter.
More than 3.52 million modification arrangements were started between April 2009 and the end of August 2010 —nearly triple the number of foreclosure completions during that time. These included more than 1.3 million trial Home Affordable Modification Program (HAMP) modification starts, more than 510,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and more than 1.6 million proprietary modifications under HOPE Now. While some homeowners may have received help from more than one program, the number of agreements offered nearly tripled foreclosure completions for the same period (1.3 million).
At nine months, almost 90 percent of homeowners remain in their permanent HAMP modification, with 11 percent defaulted. Early data indicate that HAMP permanent modifications are performing well over time, with lower delinquency rates than those reported by the industry at large. At nine months, less than 16 percent of permanent modifications are 60+ days delinquent.

Data in the scorecard also show that the recovery in the housing market continues to remain fragile. For example, foreclosure completions continue to move upward and a large supply of homes are being held off the market. While the recovery will take place over time, the Administration remains committed to its efforts to prevent avoidable foreclosures and stabilize the housing market.

Each month, the Housing Scorecard incorporates key housing market indicators and highlights the impact of the Administration's unprecedented housing recovery efforts, including assistance to homeowners through the FHA and HAMP.

NAR MEETS WITH BIG BANKS TO DISCUSS FORECLOSURES PROBLEMS

noreply@blogger.com (Dulcie Crawford) — Mon, 01 Nov 2010 22:30:00 +0000

With all the recent issues surfacing related to foreclosures, it is good to note that the National Association of Realtors (NAR) is taking a highly proactive stance to address the current market struggle with housing and mortgage. Recently, the NAR Leadership Team has held several meetings during the past two months with the heads of major national banks, i.e. Bank of America Home Loans, Wells Fargo Home Mortgage, Chase Home Mortgage, and CitiMortgage, to discuss problems with short sales and the availability of credit to potential buyers. NAR’s position has always been that “we want to help homeowners avoid foreclosure, whenever possible.”

These meetings give NAR an opportunity to discuss with the four largest lenders the problems Realtors face every day when working to get deals to the closing table. All the banks acknowledge the difficulties that realtors, lenders and homeowners are facing and have given their commitment to work with all concerned.

We are including below the key agreement points provided by NAR, as a result of this meeting. As an active member of the NAR, my group supports the initiatives and will closely monitor the progress that will enable us to provide you with the best service.

SUMMARY OF BANK MEETINGS

In each meeting, lenders and REALTORS® have agreed to work in the following areas:

Transparency
REALTORS® need to understand each lender’s policies for underwriting loans, valuing property, selecting brokers for REO listings, and deciding whether to approve a short sale.

Service
Having a single point of contact is extremely important to improve service to the borrower, short seller, and the real estate agent. NAR is urging all lenders to adopt this approach.

Balance
FHA and the government sponsored enterprises (GSEs: Fannie Mae and Freddie Mac) have become over-focused on safety at the expense of their mission. NAR urges lenders to advocate a return to a reasonable center, now that credit policies have over-corrected.

Speed
When a borrower applies for a loan and receives a conditional approval, the conditions are often impossible to meet. It would be better to decline the loan and allow all parties to move on. Short sale approvals often take months. HAFA and other short sales programs should be implemented quickly.

Accuracy
Lenders are aware that problems related to the application of new appraisal guidelines have skewed some appraisals. NAR continues to raise these issues with the lenders, regulators, FHA, and the GSEs and seek solutions.

Performance/Compensation
Real estate professionals work extremely hard and for many months on a successful short sale. NAR urges lenders to make commissions policies more transparent and to agree not to reduce commissions at or shortly before closing. At the same time, NAR acknowledges that lenders waste time processing short sales that are not real offers, and we urge our members not to participate in this practice.

Lenders also are monitoring performance of REO listing brokers and will take steps to resolve problems.

FREE ONLINE TOOL FOR BOTH BUYERS AND SELLERS

noreply@blogger.com (Dulcie Crawford) — Fri, 01 Oct 2010 22:38:00 +0000

We have a great online tool that you can subscribe to that will allow you to keep abreast of what’s happening in a particular neighborhood, whether you are a seller or a buyer. Called the Market Snapshot, the web-based resource is a comprehensive database of real estate activities that can be tailored to your search parameters.

Specifically, the report pulls together recent listings and sales in a community or zip code culled from the MLS (Multiple Listing Service), and gives you information on nearby schools and the community. This is a very handy reference for both sellers and buyers.

As a seller, it gives you critical market information about what’s for sale in your neighborhood, the recent sold properties, data on asking price vs. selling price and time on the market. If your home is currently on the market or you are thinking of selling, this will give you the advantage to make decisions based on facts that you can discuss with your Realtor, and will prove to be especially useful to implement marketing and pricing strategies to sell your home faster.

As a buyer, the Market Snapshot will give you valuable insight into the community you’re interested in, check nearby schools and neighborhood amenities (e. g. shopping areas, post office, places of worships, etc.) up to a five-mile radius. But more importantly, it will give you statistics on current sales that will help you make a smart offer on a home in this kind of market condition.

The updated report is sent to your inbox on a regular basis and is very easy to modify and can be stopped at anytime if you no longer wish to subscribe. We hope you give it a try! To sign-up, please click on this link: http://www.dulciecrawford.com/HomeValues.ubr. It takes thirty seconds but the information you can derive from it will help you be one step ahead of the competition. Remember: knowledge is power, and it’s even better if it’s free.

If you have any questions or need help signing up for this complimentary service, please call The Dulcie Crawford Group at 702.285.1990 or 702.588.6842.

HOW A SECTION 203(K) PROGRAM CAN BE AN OPTION TO FINANCE A DISTRESSED PROPERTY

noreply@blogger.com (Dulcie Crawford) — Fri, 17 Sep 2010 23:01:00 +0000

With the real estate market flooded with distressed properties, it can be a discouraging scenario for a potential homebuyer to proceed with the sales process even if the house is priced within reach and appears to be a good investment. Often, the thought of dealing with a fixer-upper suggests visions of overblown budgets, problems with contractors and never-ending issues. However, not many people may know that there is a loan program available from the Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), called the Section 203(k) that is available for such properties.

The following are some basic information from the HUD website that explains what the program is all about. The program is discussed in greater detail at the following link: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

203(k) - How It Is Different

Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.

When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan.

This program operates through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer's credit approved. These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help people buy homes.

The Section 203(k) program is the Department's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. Since these are the primary goals of HUD, the Department believes that Section 203(k) is an important program and we intend to continue to strongly support the program and the lenders that participate in it.

Many lenders have successfully used the Section 203(k) program in partnership with state and local housing agencies and nonprofit organizations to rehabilitate properties. These lenders, along with state and local government agencies, have found ways to combine Section 203(k) with other financial resources, such as HUD's HOME, HOPE, and Community Development Block Grant Programs, to assist borrowers. Several state housing finance agencies have designed programs, specifically for use with Section 203(k) and some lenders have also used the expertise of local housing agencies and nonprofit organizations to help manage the rehabilitation processing.

The Department also believes that the Section 203(k) program is an excellent means for lenders to demonstrate their commitment to lending in lower income communities and to help meet their responsibilities under the Community Reinvestment Act (CRA). HUD is committed to increasing homeownership opportunities for families in these communities and Section 203(k) is an excellent product for use with CRA-type lending programs.

Eligible Property

To be eligible, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. All newly constructed units must be attached to the existing dwelling. Cooperative units are not eligible.

Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place.

In addition to typical home rehabilitation projects, this program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit.

An existing house (or modular unit) on another site can be moved onto the mortgaged property; however, release of loan proceeds for the existing structure on the non-mortgaged property is not allowed until the new foundation has been properly inspected and the dwelling has been properly placed and secured to the new foundation.

A 203(k) mortgage may be originated on a "mixed use" residential property provided: (1) The property has no greater than 25 percent (for a one story building); 33 percent (for a three story building); and 49 percent (for a two story building) of its floor area used for commercial (storefront) purposes; (2) the commercial use will not affect the health and safety of the occupants of the residential property; and (3) the rehabilitation funds will only be used for the residential functions of the dwelling and areas used to access the residential part of the property.

Condominium Unit

The Department also permits Section 203(k) mortgages to be used for individual units in condominium projects that have been approved by FHA.

The 203(k) program was not intended to be a project mortgage insurance program, as large scale development has considerably more risk than individual single-family mortgage insurance. Therefore, condominium rehabilitation is subject to the following conditions:

Owner/occupant and qualified non-profit borrowers only; no investors;
Rehabilitation is limited only to the interior of the unit. Mortgage proceeds are not to be used for the rehabilitation of exteriors or other areas which are the responsibility of the condominium association, except for the installation of firewalls in the attic for the unit;
Only the lesser of five units per condominium association, or 25 percent of the total number of units, can be undergoing rehabilitation at any one time;
The maximum mortgage amount cannot exceed 100 percent of after-improved value.

After rehabilitation is complete, the individual buildings within the condominium must not contain more than four units. By law, Section 203(k) can only be used to rehabilitate units in one-to-four unit structures. However, this does not mean that the condominium project, as a whole, can only have four units or that all individual structures must be detached.

If you have questions about the 203(k) program or are interested in getting a 203(k) insured mortgage loan, we suggest that you get in touch with an FHA-approved lender in your area or the Homeownership Center in your area. Full guidelines, including maximum mortgage amount, appraisal and inspection requirements and certain program limitations, can be found at the HUD website: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

If you need a well-qualified lender that can help you explore how this program can help you, please call us at 702.285.1990 and we would be happy to give you a referral.

FHA SHORT REFINANCE OPTION: POTENTIAL RELIEF FOR UNDERWATER HOMEOWNERS

noreply@blogger.com (Dulcie Crawford) — Sat, 04 Sep 2010 22:17:00 +0000

Is your home worth less than you owe? On September 7, 2010, the US Department of Housing and Urban Development (HUD) will begin offering its Federal Housing Administration (FHA) Short Refinance Option. The HUD press release states that: “The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth - or 'underwater' - because their local markets saw large declines in home values. Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.”

In order to be able to participate in the Short Refinance Option, a homeowner/borrower:

Must owe more on their mortgage than their home is worth and be current on their existing mortgage.
Must have their mortgage through any non-FHA lender.
Must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500.
Must be using this option on their primary residence.
The borrower's existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower's combined loan-to-value ratio to no greater than 115% and all lien holders must agree to the terms.
The new FHA-guaranteed loan must have a loan-to-value ratio of no more than 97.75%.

The FHA press release also says the FHA Short Refinance program is voluntary and “requires the cooperation of all lien holders”. This program is not automatically open to any homeowner who is underwater on a conventional home loan; as stated previously, the borrower must meet all guidelines and satisfy other typical FHA loan underwriting prerequisites.

Furthermore, the press release states that: “To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens.” Interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees the write down a portion of the unpaid principal.

If you need assistance in determining your eligibility for the FHA Short Refinance program, please give us a call at 702.285.1990 and we would be happy to evaluate your individual situation.

FANNIE MAE INTENSIFIES PENALTIES FOR STRATEGIC DEFAULTERS

noreply@blogger.com (Dulcie Crawford) — Fri, 02 Jul 2010 22:24:00 +0000

Seven-Year Lockout Policy for Strategic Defaulters

We would like to share this current update on recent Fannie Mae policy changes designed to encourage borrowers to work with their servicers and pursue alternatives to foreclosure. This change will affect homeowners who decides to do a “strategic default,” -- when borrowers are walking away from their homes based on the sheer fact that the property is currently worth less than what is owed, even if they are able to afford their monthly mortgage payments. This phenomenon isn’t looked upon kindly, as it unnecessarily adds to the growing number of foreclosures across the nation.

Under these changes, defaulting borrowers who walk away and had the capacity to pay or did not complete a workout alternative in good faith will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the day of foreclosure.

In addition, Fannie Mae said it will take legal action to recoup the outstanding mortgage debt from borrowers who strategically default on their loans in jurisdictions that allow for deficiency judgments. In an announcement next month, the company said it will be instructing its servicers to monitor delinquent loans facing foreclosure and put forth recommendations for cases that warrant the pursuit of deficiency judgments.

“We’re taking these steps to highlight the importance of working with your servicer,” said Terence Edwards, executive vice president for credit portfolio management. “Walking away from a mortgage is bad for borrowers and bad for communities, and our approach is meant to deter the disturbing trend toward strategic defaulting.”

On the flip side, Edwards said borrowers facing hardship who make a good faith effort to resolve their situation with their servicer will preserve the option to be considered for a future Fannie Mae loan in a shorter period of time.

According to Fannie Mae, troubled borrowers who work with their servicers and provide information to help the servicer assess their situation can be considered for foreclosure alternatives, such as a loan modification, a short sale, or a deed-in-lieu of foreclosure. Fannie Mae said borrowers with extenuating circumstances who work out one of these options with their servicer could be eligible for a new mortgage loan in three years and in as little as two years depending on the circumstances.

Here is the verbiage from the FN Bulletin:

Currently, the waiting period that must elapse after a borrower experiences a
foreclosure is seven years. However, Fannie Mae allows a shorter time period –
five years – if certain additional requirements are met (e.g., minimum down
payment and credit score, and occupancy requirements).

These requirements are being modified to remove the five year option. Unless the foreclosure was the result of documented extenuating circumstances, which only requires a three-year waiting period (with additional requirements), all borrowers will now be required to meet a seven-year waiting period after a prior foreclosure to be eligible for a new mortgage loan eligible for sale to Fannie Mae."

Don't miss the section that says borrowers who have extenuating circumstances may be eligible for new loan in a shorter timeframe.

You can check out the full text of the announcement here: Fannie Mae's Selling Guide Announcement SEL-2010-05.

What Tax Records Should You Keep and How Long Should You Keep Them?

noreply@blogger.com (Dulcie Crawford) — Thu, 03 Jun 2010 23:54:00 +0000

While tax preparation seems to get a little bit easier each year with the prevalence of online tax prep software, there’s still one question that leaves many Americans scratching their heads: What records should I hang onto for tax purposes and how long should I keep them?

There are a few basic records that everyone should keep, according to the IRS, including documents that provide evidence of your income and expenses. In addition, if you own a home or have investments, the IRS recommends that you hang onto related records. Here’s the breakdown:

Basic Records to Keep

Now that you know what to keep, here’s the low-down on how long to keep them (also known as the “period of limitations”):

How Long to Keep Records*

*Unless otherwise noted, the number of years you should keep records refers to the time period beginning after you filed your return. If you filed your return before the deadline, the IRS treats it as if you filed it on the deadline.

For more details about which records you should keep for tax purposes, the IRS has put together a handy publication on Recordkeeping for Individuals.

GREAT NEWS FOR SHORT SALE FRUSTRATION

noreply@blogger.com (Dulcie Crawford) — Fri, 12 Feb 2010 00:47:00 +0000

On November 30, 2009, the Obama Administration released guidelines and uniform forms for its Home Affordable Foreclosure Alternatives Program (HAFA). Modified HAFA rules for loans owned or guaranteed by Fannie Mae or Freddie Mac will be issued in coming weeks. HAFA does not apply to FHA or VA loans.

HAFA, which will help homeowners who are unable to retain their home under the Home Affordable Modification Program (HAMP), provides incentives in connection with short sales and deeds-in-lieu of foreclosure. HAFA is a complex program with 43 pages of guidelines and forms. We will keep you updated in future blogs and strive to simplify the jargon to see how this program can help you.

The program:

Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
Uses borrower financial and hardship information already collected under HAMP.
Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
Prohibits the servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6%).
Requires borrowers to be fully released from future liability for the first mortgage debt and, if the subordinate lien holder receives an incentive under HAFA, that debt as well (no cash contribution, promissory note, or deficiency judgment is allowed).
Uses a standard process, uniform documents, and timeframes/deadlines.
Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to a $1,000 match for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders. Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.
Does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program ends on December 31, 2012.

Who is eligible for HAFA?
The borrower must meet the basic eligibility criteria for HAMP:

Principal residence
First lien originated before 2009
Mortgage delinquent or default is reasonably foreseeable
Unpaid principal balance no more than $729,750 (higher limits for two- to four-unit dwellings)
Borrower’s total monthly payment exceeds 31% of gross income

What else should I know?

The deal must be “arms length.” Borrowers can’t list the property or sell it to a relative or anyone else with whom they have a close personal or business relationship.
The amount of debt forgiven might be treated as income for tax purposes. Under a law expiring at the end of 2012, however, forgiven debt will not be taxed if the amount does not exceed the debt that was used for acquisition, construction, or rehabilitation of a principal residence. Check with a tax advisor.
The servicer will report to the credit reporting agencies that the mortgage was settled for less than full payment, which may hurt credit scores.
Buyers may not reconvey the property for 90 days.

HOMEBUYER TAX CREDIT CHANGES AT A GLANCE

noreply@blogger.com (Dulcie Crawford) — Fri, 12 Feb 2010 00:41:00 +0000

First-time Homebuyers and Repeat Homebuyers still have time to take advantage of the tax credit available to them. The following quick reference is from the Federal Housing Tax Credit website. We have provided more links to detailed discussions for each.

If you have questions specific to your situation, please call us at 702-285-1990 and we would be happy to provide answers.

$8,000 First-time Home Buyer Tax Credit at a Glance

The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The tax credit applies only to homes priced at $800,000 or less.
The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

To view Frequently Asked Questions, please click here: http://www.federalhousingtaxcredit.com/faq1.php

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
The tax credit applies only to homes priced at $800,000 or less.
The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

You can find Frequently Asked Questions here: http://www.federalhousingtaxcredit.com/faq2.php

RECENT RULING MAY HELP HOMEOWENERS TRYING TO AVOID FORECLOSURE / LV HOME PRICES RISE AS SALES TAKE SEASONAL FALL

noreply@blogger.com (Dulcie Crawford) — Wed, 16 Dec 2009 02:08:00 +0000

In a recent report from the Las Vegas Review Journal by reporter John G. Edwards, homeowners fighting back foreclosure may have some hope to delay the process. This ruling made by U. S. District Judge Kent Dawson “makes it harder for lenders to foreclose on home mortgages” as it challenges the electronic system of recording the ownership of residential mortgages for the mortgage banking industry.

About half of all U.S. mortgages “whose loans have been securitized, sliced and diced are now held" by Mortgage Electronic Registration Systems Inc., or MERS, according to a blog posted by securities analyst Barry Ritholtz.

According to the article, “The case, heard by a panel of federal judges in November, concerned whether Mortgage Electronic Registration Systems Inc. could foreclose on residences on behalf of lenders.”

The electronic system records the ownership of residential mortgages for the mortgage banking industry.

Dawson said the company could not foreclose on a home, because it did not provide evidence that it held the note on the residence and didn’t show that it was an agent of the lender.
The case started in bankruptcy court two years ago.

MERS officials asked bankruptcy Judge Linda Riegle for permission to start foreclosure proceedings against a property owned by Lisa Marie Chong. Bankruptcy trustee Lenard Schwartzer objected, saying the electronic system was not a “real party in interest” in the mortgage loan.

Like many mortgages, Chong’s loan had been securitized, meaning it had been pooled or packaged into a security held by investors.

Mortgage Electronic Registration Systems Inc. was unable to show that it had possession of the note. The bankruptcy judge ruled in Schwartzer’s favor. The decision was appealed to federal court.

In his decision Tuesday, Dawson said "the registration system does not lose money when borrowers fail to make payments on home mortgages." Dawson found that the Mortgage Electronic Registration must at least provide evidence that it was a representative of the mortgage loan holder, which it failed to do.

“Since MERS provided no evidence that it was the agent or nominee for the current owner of the beneficial interest in the note, it has failed to meet its burden of establishing that it is a real party in interest with standing,” Dawson said, affirming the bankruptcy court ruling.

Real estate attorney Tisha Black Chernine said the ruling is good news for struggling borrowers and homeowners in general.

“It will have a dramatic effect on lenders being able to foreclose,” she said.

Because the decision makes it more difficult to foreclose, she hopes lenders will be more willing to negotiate with homeowners struggling to meet mortgage payments by approving short sales or making other concessions.

In a short sale, a lender agrees to allow a homeowner to sell his home for less than is owed.
This is particularly helpful, because many homeowners owe far more than their homes are worth since home prices have fallen. Houses sold in short sales typically go for 30 percent more than homes sold after foreclosure, Black Chernine said.

Appraisers looking at the short sale price will use it in determining the market value. Thus, avoiding foreclosure results in higher market values for other houses, she said.
“It should help buoy home prices,” Black Chernine said.

Bill Uffelman, chief executive officer of the Nevada Bankers Association, predicted that most foreclosures will be able to proceed, because the real mortgage owners and notes will be able to be identified in most cases.

However, he said, many homeowners facing foreclosure may be able to stay in their homes longer because of the delay.

“In the end in 99.9 percent of the cases, ownership of the note will be proved,” he said.
While the decision is believed to be the first of its kind in Nevada, the Kansas Supreme Court made a similar finding in a similar case.

LV MEDIAN PRICE RISE, SALES SLOW DOWN TYPICAL OF HOLIDAY SEASON
On another front, the recent statistics released by the Greater Las Vegas Association of Realtors show that Las Vegas’ median price of homes sold in November was $140,000, about $900 higher than October. The median price was $138,000 in September.

The traditional holiday sales slowdown of homes and condos took place in November while prices edged up slightly again, according to the report.

Analysts say the increase is a further reflection that home prices have stabilized for now. Overall, home prices are down 25 percent from November 2008.

Condo prices fell 2.9 percent in November to $68,000. Prices are 25 percent below where they were in November 2008.

Demand for homes and condos tend to soften in November, December and January because of the holidays, but sales last month eclipsed November 2008.

The GLVAR reported 3,117 sales of new homes in November, a 43 percent increase over November 2008. The 726 sales of condos and town homes was 85 percent higher than November 2008.

Compared to October, however, sales of homes fell by 12 percent and sales of condos and town homes fells by 15 percent.

Despite the slowdown, GLVAR President Sue Naumann said the extension of an $8,000 tax credit for first-time homebuyers and creation of $6,500 tax credit for other buyers should spur sales in 2010.

Investors and first-time buyers continue to dominate the sales market, according to the GLVAR.

The percentage of homes purchased with cash in November was 41 percent, nearly matching October, Naumann said. Many investors rely on cash deals.

The number of sales of foreclosed upon homes continued to drop in a reflection of limited supply that’s on the market, analysts said. The GLVAR reported 61 percent of all sales in November were bank-owned properties, down from 64.5 percent in October.

FIRST TIME HOMEBUYERS’ TAX CREDIT EXTENDED THROUGH APRIL 2010; ALSO OFFERED TO CURRENT HOMEOWNERS

noreply@blogger.com (Dulcie Crawford) — Sat, 31 Oct 2009 00:49:00 +0000

We have some great news for first-time homebuyers! The Senate has agreed to extend the First Time Homebuyers’ Tax Credit through April 2010. The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November.

More great news: The Senators also agreed to offer a reduced credit to some repeat buyers. Current homeowners looking for a new home could qualify for a $6,500 credit if they have lived in their existing primary residence for at least five years. The home buyers’ credit would be available to individuals earning up to $125,000, or $250,000 for couples, up from $75,000 for individuals and $150,000 for couples under the current law.

The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers.

If you’re thinking of buying, you cannot have a better timing than now. With inventory still at peak levels, and prices and mortgage rates at record lows, this is a totally win-win situation for everybody. The current scenario also bodes well for current homeowners who may be planning to downsize or get a bigger place.

The Dulcie Crawford Group is just a phone call or email away for honest and sensible real estate advice. Please call us at 702-285-1990 or email dulciecrawford@gmail.com.

FED DECISION SHAKES THINGS UP; HOW WILL THIS AFFECT YOU?

noreply@blogger.com (Dulcie Crawford) — Tue, 29 Sep 2009 21:53:00 +0000

This just came in from one of our preferred lenders, Paula Clark at Wells Fargo Home Mortgage: Last week at the Fed’s regularly scheduled Federal Open Market Committee meeting, some major decisions were made that will ultimately impact mortgage rates. But just what did they decide...and what do their decisions mean for home loan rates?

The Fed said they are going to ration out the remaining commitment of Mortgage Backed Security purchases through the first quarter of 2010. There will be no additional buying, but instead, a longer weaning off of the program. There was some speculation about the Fed increasing the amount of buying above the $1.25T committed to, and last week's statement is the Fed's nice way of saying "no." They will not be buying more in quantity, but what they will do is attempt to provide a smoother transition to normal market conditions.

It is a given that once the Fed ceases its purchases, that interest rates will climb significantly higher...most likely back above the 6% area. So instead of a hard transition with a large bump in rates, the Fed is attempting to allow rates to gradually rise. This means that waiting to purchase or refinance will very likely mean a higher interest rate.

Their decision also means that the Fed's remaining purchases will all be lower in quantity, as the remaining allotment for purchases will be spread over a longer period of time - and additionally, will not necessarily be spread out as evenly as their past purchases - which could lead to more volatility for rates in the near term.

In other news, Existing Home Sales and New Home Sales were reported slightly less than expected, but both reports continue to show signs of an improving housing market. The inventory of unsold existing homes fell to its lowest inventory level since April 2007, while the inventory of unsold new homes dropped to its lowest level since January 2007. While some of the decline in new home inventory may be due to builders constructing fewer homes - these reports indicate that the housing market is indeed showing signs of life.

Remember, with home loan rates still low - but slated to increase with the Fed's recent decision - as well as a juicy tax credit for First Time Home Buyers that is going to expire on November 30th, it makes sense to get off the fence if you've been considering a purchase or refinance. For sensible home advise, you can contact Paula Clark directly at tel. (702) 868-3920, cell (702) 277-3554, or email her at paula.L.clark@wellsfargo.com.

65 DAYS REMAINING FOR THE $8,000 FIRST TIME HOMEBUYER'S TAX CREDIT

noreply@blogger.com (Dulcie Crawford) — Sat, 26 Sep 2009 21:56:00 +0000

Time is fast running out for the $8,000 First Time Homebuyer's Tax Credit, which expires on November 30, 2009. It has NOT been extended as of today. You must close escrow by this date to be eligible for the tax credit. Given today’s market conditions, you should allow 30- 45 days to close escrow. This means you want to be in contract by October 15, 2009.

That’s only 20 days to find a house.

Another positive factor to consider buying now is the very affordable interest rates. See below for the most up-to-date mortgage rates, courtesy of one our preferred lenders Aaron Gordon from Bank of America Home Loans. Aaron is reminding those who are seriously considering buying a house that the conditions are in your favor. Interest rates are steady, and rates remain at a three-month low. The Fed has slowed the purchase of mortgages amid signs of an improving economy. Fifteen-year mortgages are at their lowest since 1991.

Here’s a round-up of today’s rates (subject to change until locked):

4.875% (APR 5.129) FOR A 30 YR FIXED CONVENTIONAL LOAN (OWNER OCCUPIED OR SECOND HOME) with 1.125 points, NO ORIGINATION FEE!

4.250% (APR 4.626) FOR A 15 YR FIXED CONVENTIONAL LOAN (OWNER OCCUPIED OR SECOND HOME) with 0.750 points, NO ORIGINATION FEE!

4.875% (APR 5.139) FOR A 30 YR FHA / VA LOAN, WITH 1.250 POINTS, NO ORIGINATION FEE!

4.250% (APR 4.682) FOR A 15 YR FHA / VA LOAN, WITH 1.125 POINTS, NO ORIGINATION FEE!

5.500% (APR 5.763) ON A 30 YR JUMBO LOAN OVER $417,000 with 1.125 POINTS, NO ORIGINATION FEE!

5.000% (APR 5.244 ) ON A 5 YR JUMBO ARM OVER $417,000 with 1.000 POINT, NO ORIGINATION FEE!

5.875% (APR 6.133) ON A 30 YR INVESTOR (NON-OWNER OCCUPIED) LOAN UNDER $417,000 WITH 20% DOWN with 1.000 POINTS, NO ORIGINATION FEE (720 mid score)!

5.375% (APR 5.603 ) ON A 30 YR INVESTOR LOAN (NON-OWNER OCCUPIED) UNDER $417,000 WITH 25% DOWN with 0.750 POINTS , NO ORIGINATION FEE (720 mid score)!

NO ORIGINATION FEE ON ANY OF THE LOANS ABOVE. NO PROCESSING FEE. NO UNDERWRITING FEE. NO ADMIN FEE. You can contact Aaron at tel. 702.283.2333, fax 1.866.905.7922, or email at aaron.gordon@bankofamerica.com.

These rates assume your credit history is in good standing. This is not a credit decision or a commitment to lend; credit is subject to approval. The actual terms of your loan will vary depending on factors such as your credit history when you apply. Until you lock your rate, rates and terms are subject to change without notice. Additional programs are available.

Unless otherwise noted, these rates are based on an Owner-occupied residency in Nevada.

For adjustable-rate mortgages, rates are subject to increase after the initial fixed-rate period. A 30-year loan term applies to adjustable-rate mortgages.

Mortgage insurance may be needed, which could increase the monthly payment and APR.

We hope you find the above information valuable. We at The Dulcie Crawford Group make every effort to be on top of our game, so we can serve you the best way possible. If you have any questions or need sound advice – whether you’re thinking of selling your home or buying one – please call us at 702.285.1990.

TAKE ADVANTAGE OF RECORD-LOW INTEREST RATES BEFORE IT GOES UP

noreply@blogger.com (Dulcie Crawford) — Sat, 19 Sep 2009 21:46:00 +0000

One of preferred lenders, Paula Clark at Wells Fargo Home Mortgage, is reminding us that mortgage rates are still very affordable but may soon go up. Here’s a snippet of her advice to homebuyers:

“Rates are at a low point right now and Wells Fargo thinks that we have a small window of opportunity before it goes higher. The economy is showing signs of improvement and the Fed is running at the end of its buying program. We think that rates could soon go up and go up quickly. If you have an offer accepted, are pending bank acceptance on a short-sale, or have borrowers that are floating on their interest rate, locking the rate is the best strategy per America's largest home lender.”

With the $8,000 First-Time Homebuyers Tax Credit ending by December 1st (we hope Congress extends the program) the highly reasonable rates, and the abundance of property inventory, home ownership is within reach now more than ever.

Wells Fargo offers a free 60-day lock in- which is more than enough to get the hardest loan approved and closed. Paula has personally averaged under 30-days from application to buyer signing docs at escrow. You can contact Paula Clark at 702-868-3920 or 702-277-3554. Please tell her The Dulcie Crawford Group referred you! We only work with the most reliable in the industry, and recommend those whom we can work with ourselves.

We hope you find the above information valuable in your home search. We at The Dulcie Crawford Group make every effort to be on top of our game, so we can serve you the best way possible. If you have any questions or need sound advice, please call us at 702.285.1990.

95 DAYS LEFT FOR THE $8,000 FIRST TIME HOMEBUYER'S TAX CREDIT

noreply@blogger.com (Dulcie Crawford) — Mon, 31 Aug 2009 22:00:00 +0000

The clock is ticking for first time home buyers to take advantage of the $8,000 tax credit. The tax credit expires on November 30, 2009, if not extended. The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. If you do not close escrow by this date, you will be ineligible for the $8,000 tax credit. At the current market, you should allow 30- 45 days to close escrow today. This means you want to be in contract by October 15, 2009.

That’s 49 days to find a house. A daunting task? Probably. But if you have a great team, i.e. a highly experienced Realtor and lender, working with you, the process shouldn’t be that difficult. Easier said than done you might say, but it can be done.

More information on the tax credit can be found here:
http://www.federalhousingtaxcredit.com/2009/faq.php

CLOSING DATE EXPECTATIONS WHEN BUYING BANK-OWNED PROPERTIES

Most contracts today call for 30 to 45 day closings. Most contracts also call for late fees, sometimes as high as $150/day or more, if you don't close on time.

There were new laws and guidelines enacted concerning mortgages in the last few months that have changed things.

In combination with the time-consuming challenges some buyers faced when buying bank-owned properties today, it's important to consider the potential pitfalls when deciding to agree to a closing date and the late fees, and anticipating what they could possibly cost.

First is the appraisal. Two of the biggest challenges you can face on the appraisal are value issues and repairs.

Quite often, on bank-owned property transactions, we see that the actual appraised value of the home comes in less than the agreed-to sales price.

When that happens you have four options:

seller lowers price
buyer pays difference
seller and buyer split difference in some manner
cancel (ask your agent if you have this option)

Many buyers choose the first option. This means going back to the bank for their response. That response can take sometime, anywhere from a few days to a week or more.

If the home is in need of repairs, those take time too. Allow anywhere from a few days to a few weeks, depending on the scope of the repairs.

Appraisals take a little longer to get today. The new Regulation Z federal laws that were enacted in late July made it so lenders cannot collect fees, like appraisal money, from a borrower, and therefore cannot order the appraisal, for a minimum of three business days from the date of application or the date the lender sends the disclosure package.

So, this means the appraisal is ordered about 3-4 days after application date. Appraisals can take between 5 -10 business days today so you may be looking at 8 -14 business days before you know of the value or repair challenges.

Another time-consuming factor when buying a bank-owned home is getting the payoff demand from the homeowner's association.

Here’s a typical scenario: The seller stopped making his payments and went into foreclosure. His bank took back the home. You bought from the bank. The seller owes his homeowner's association (HOA) money that he didn't pay when he missed his payments. With penalties and fines, this number could be in the $10,000's.

Your escrow company will order this HOA payoff demand. However, with the high number of foreclosures today and the amount of payoff requests on the HOA, these payoff demands can take weeks, or sometimes even months to get.

Finally, when buying a bank-owned home, you need the seller (the bank) to sign off on the closing statement. Because you are dealing with large banks, this can sometimes take a few days or even a week or more.

And none of this addresses any potential challenges with your actual loan.

Hopefully, none of these adversely affect your transaction. However, its important to understand the potential challenges and timeframes you face when buying a bank-owned home today, especially when negotiating closing dates and late fees.

RATE UPDATE:

INTEREST RATES ARE UP LAST WEEK. Rates approached a 50 year low, once again, and then bounced up slightly.

Courtesy of one of our preferred lenders, Aaron Gordon at Bank of America Home Loans, plan on the following rates:

5.000 % (APR 5.344) FOR A 30 YR FIXED CONVENTIONAL LOAN (OWNER OCCUPIED OR SECOND HOME) with 1.250 points, NO ORIGINATION FEE!

5.000 % (APR 5.290) FOR A 30 YR FHA / VA LOAN, WITH .625 POINTS, NO ORIGINATION FEE!

5.625 % (APR 5.960) ON A 30 YR JUMBO LOAN OVER $417,000 with 1.000 POINTS, NO ORIGINATION FEE!

5.125 % (APR 5.450) ON A 5 YR JUMBO ARM OVER $417,000 with 1.000 POINTS, NO ORIGINATION FEE!

6.125 % (APR 6.470) ON A 30 YR INVESTOR (NON-OWNER OCCUPIED) LOAN UNDER $417,000 WITH 20% DOWN with 1.000 POINT, NO ORIGINATION FEE (720 mid score)!

5.500 % (APR 5.844) ON A 30 YR INVESTOR LOAN (NON-OWNER OCCUPIED) UNDER $417,000 WITH 25% DOWN with 1.125 POINT, NO ORIGINATION FEE (720 mid score)!

NO ORIGINATION FEE ON ANY OF THE LOANS ABOVE. NO PROCESSING FEE. NO UNDERWRITING FEE. NO ADMIN FEE. Rates subject to change until locked.

QUESTION OF THE WEEK:

"My lender asked me for a copy of my tax returns and W2's. I have no idea where to find them. What can I do?"

You can call the IRS at 1-800-829-1040. Option 1, then option 9, then option 1, then option 2. You will be speaking with a live person.

Tell the agent you want a complete transcript including W2's for whichever year you need. They will usually fax it to you within one day for free.

We hope you find the above information valuable in your home search. We at The Dulcie Crawford Group make every effort to be on top of our game, so we can serve you the best way possible. If you have any questions or need sound advice, please call us at 702.285.1990.