Portland Vancouver & Clark County Washington Real Estate Information

The Portland -Vancouver Area and Foreclosures, How Do We Rate

noreply@blogger.com (Denice Thompson Neddo) — Tue, 08 Mar 2011 22:23:00 +0000

The Portland Oregon, Vancouver Washington Metro Area Foreclosure Ratings

According to CoreLogic, distressed sales accounted for 28.8 percent of all Portland home sales in November 2010 and 31.5 percent statewide. As the Portland Tribune reports, while the Portland rate is high by historical standards, the city was in better shape in November than most of its peers.

The CoreLogic numbers state "Distressed Sales" I am not sure if this includes short sales or not. Short Sales are harder to track, as many are listed for sale as short sales, and many of these do not actually close, but end up in the foreclosure numbers in the end.

The Portland Vancouver Metro Area includes Portland (Multnomah County, Oregon) Beaverton (Washington County, Oregon), and Vancouver (Clark County, Washington)

Read more: PDX foreclosure rate at 28.8% | Portland Business Journal

Short Sales New HAFA Guidelines

noreply@blogger.com (Denice Thompson Neddo) — Tue, 01 Mar 2011 21:58:00 +0000

HAFA Short Sales Have New Guidelines!

The benefit of a HAFA short sale is that you are no longer responsible for the difference between what you owe on your mortgage and the amount that your home sells for. You will also receive $3,000 in relocation assistance upon successful closing of your short saleIn a short sale, the servicer allows you to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage or deed-in-lieu of foreclosure.

YES! $3000 to the seller for relocation assistance! You may be eligible to apply if you meet all of the following:

•You live in the home or have lived there in the last 12 months.
•You have a documented financial hardship.
•You have not purchased a new house within the last 12 months.
•Your first mortgage is less than $729,750.
•You obtained your mortgage on or before January 1, 2009.
•You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

*Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you qualify for HAFA.

This is great news, lenders are also held to shorter timeframes with a HAFA short sale.
Unlike the process for many short sales and deeds-in-lieu of foreclosure, HAFA sets clear timelines to keep the process efficient.

Mortgage servicers must evaluate homeowners for HAFA within 30 days after one of the eligibility criteria is met. If the homeowner is eligible, the servicer will send
a Short Sale Agreement (SSA)—a contract between the homeowner and the servicer—
that will include:

• A list price approved by the servicer;
• The length of time the property will be marketed for sale;
• An agreement releasing the homeowner from all future liability after the property is sold;
• The amount of the monthly mortgage payment, if any, that the borrower will be
required to pay during the term of the SSA;
• Information about $3,000 in relocation assistance after closing; and
• An agreement that so long as the borrower performs in accordance with the terms of the SSA, the servicer will not complete a foreclosure sale.

Do you need more information on a short sale ?

Contact Denice Neddo, Certified Short Sale Specialist
360-607-4226
denice@deniceneddo.com

http://www.portlandvancouverhomes.com/

When to consider a short sale

noreply@blogger.com (Denice Thompson Neddo) — Thu, 10 Feb 2011 18:04:00 +0000

When to consider a Short Sale?

When is the best time to consider a short sale?

Deciding to Short Sale your property is usually considered an option after homeowners have exhausted their savings, spent weeks or months trying to get a loan modification and after a Notice of Trustees Sale (in Clark County) has been filed. I meet people weekly who are at the end of their available options in a foreclosure action and are just beginning the short sale process 30 to 60 days in advance of a foreclosure sale. Reviewing their history gives me the opportunity to consider what would have been a better strategy to addressing financial hardship.

The best time to consider a short sale on your property occurs prior to dipping into your savings to make your monthly mortgage payment. It should be a part of a designed strategy that preserves your financial resources and protects your credit to the extent possible. Good planning in the face of financial hardship pays big dividends.
First and foremost you must determine if keeping your house long term is even feasible! Your house payment should be no more than 31% of your gross monthly income. Total up your monthly consumer debt payments and your mortgage(s) and that should be no more than 45% of your gross monthly income. If your debt is exceeding those ratios then we need to make a plan. Short Sale? Let's see.

If lowering your monthly mortgage payment by extending the term to 40 years and lowering the interest to 2% brings you into line, a loan modification may be an option. If that doesn't meet the ratios you will likely not qualify for the loan modification plans available. I can help with the calculations.

If you own more than 90% of what the house will sell for and you are upside down on the gross income ratios, short selling is a good option. The question of when to make this decision is, again, before you start making payments from your savings rather than your paycheck.

This is a difficult and confronting conversation to have with yourself or your significant other but ultimately can save you tens of thousands of dollars. Waiting until a short sale is your last option prior to bankruptcy or foreclosure will likely rob you of resources and savings you worked years to build up.

If you are having trouble having this conversation seek experienced professionals to assist you.
Denice Neddo is a CERTIFIED SHORT SALE SPECIALIST, working with home owners and sellers in Clark County, Washington and Multnomah County Oregon (The Portland Metro Area)
For more information, visit http://www.PortlandVancouverHomes.com

noreply@blogger.com (Denice Thompson Neddo) — Fri, 09 Jul 2010 23:33:00 +0000

Washougal's Parker House Restaurant is soon to be no more. The Parker House dates back to the 50s when it was the Dolphin Restaurant. In the late 60s, it became the Parker House, named for 1840s settler David Parker. The Parker House was a landmark on the Columbia River.

But it is time to make way for the future. The demo is scheduled for this coming Tuesday, a Vancouver company has been hired to demo the old building and bring on the new. RSV Building Solutions will break ground within 30 days of the demo's completion, and prepare the site to house new restaurant.

It sounds like the new restaurant is to be an upscale place, seating about 250 people on two stories called The Black Pearl on the Columbia. In December 2009, the Parker House property, at 56 S. First St. was sold to a group of investors for $1.65 million.

Find out more about the Portland - Vancouver - Camas - Washougal area

PortlandVancouver.com

Mortgages: Strategic Defaults Are On the Rise

noreply@blogger.com (Denice Thompson Neddo) — Wed, 12 May 2010 13:25:00 +0000

From Yahoo! Finance
By Jody Shenn Tue May 11, 8:08 am ET

The first wave of U.S. mortgage defaults was spurred by lenders who made bad loans and borrowers who wound up with larger monthly payments than they could ever hope to manage. Lately, something altogether different has been making an increasing contribution to soured debt: Americans choosing to stop making mortgage payments they actually can afford.

"Strategic" defaults accounted for at least 12 percent of all defaults in February, up from about 4 percent in mid-2007, according to a recent Morgan Stanley report. Analysts led by Vishwanath Tirupattur classified a default as strategic when a homeowner who hadn't previously been delinquent made an on-time mortgage payment one month; skipped payments for the next three months; and stayed current on other consumer debt of $10,000 or more.

Housing analysts say strategic defaults mainly occur when a home's value has dropped below the balance remaining on the mortgage. A homeowner in that position may decide that continuing to make payments is throwing money away, or may default to get the lender to modify the loan. An estimated one in five U.S. homes with a mortgage has "negative" home equity.

In March the Obama Administration announced it was coming up with a plan to encourage cuts to the principal on mortgages exceeding the worth of properties. Previous government efforts did not emphasize principal reduction but focused on lowering monthly payments.

Whatever you think of strategic defaults from an ethical point of view, they appear to be aiding the economy, temporarily, at least, by boosting consumer spending and allowing homeowners to stay current on their other bills. Consumer spending, which accounts for about 70 percent of economic activity in the U.S., rose at a 3.6 percent pace last quarter, more than economists forecast. The increase, the biggest since 2007, was somewhat puzzling considering that the underemployment rate was at 16.9 percent in March, near the highest level in at least 16 years. (The rate includes people without jobs, part-time workers who would prefer a full-time position, and people who want work but have given up looking.)

All told, borrowers who aren't making mortgage payments are probably skipping roughly $100 billion annually, an amount equal to 1 percent of consumer spending, according to Mark Zandi, chief economist at Moody's Economy.com. Zandi likens the money to "a form of stimulus, a little tax cut."

Not all of that "tax cut" is being spent on iPads, vacations, and lattes. "Presumably these homeowners know they're going to have to start paying again" to live somewhere, says Zandi. He suggests that falling delinquencies on credit cards and auto loans may be a sign that homeowners are using mortgage money to pay down other debt.

The bottom line: By not making mortgage payments on "underwater" homes, borrowers may be paradoxically helping to boost the economy.

What do you think??

Denice Thompson Neddo
Licensed in Oregon and Washington

360-607-4226 Vancouver
503-756-9759 Portland
360-397-0478 eFax
Denice@DeniceNeddo.com Email

PortlandVancouverHomes.com

Short Sale?

noreply@blogger.com (Denice Thompson Neddo) — Thu, 25 Feb 2010 17:40:00 +0000

Short Sale?

Read this!!

Home Maintenance Tip -

noreply@blogger.com (Denice Thompson Neddo) — Wed, 20 Jan 2010 18:06:00 +0000

Keeping Your Water Heater Fit

Most people don't give much thought to their water heater - they just turn on the faucet and expect hot water to come out. Water heaters are relatively maintenance free, and you can keep your water heater in peak operating condition just by performing two simple maintenance tasks every six months: test the pressure valve and then flush the tank.

If the pressure release valve is not operating properly, the tank can potentially over pressurize and explode. Flushing the tank prevents sediment build up, which can reduce your water heater's energy efficiency and clog your water lines. Consult your owner's manual or other maintenance guide for instructions on how to safely perform these maintenance tasks.

Denice Thompson Neddo
Licensed in Oregon and Washington
Click Here to Search Homes Like a REALTOR
360-607-4226 Vancouver
503-756-9759 Portland
360-397-0478 eFax

Denice@DeniceNeddo.com Email

www.SalmonCreekOnline.com
DeniceNeddo.com
DeniceNeddo.YourKWAgent.com
PortlandVancouverHomeSavers.com

Subpenas Served at 15 Lenders

noreply@blogger.com (Denice Thompson Neddo) — Tue, 12 Jan 2010 23:27:00 +0000

Subpoenas were served on the corporate offices of 15 mortgages companies Tuesday as part of an investigation of the backgrounds of claims filed against the Federal Housing Administration (FHA) mortgage insurance program.

The subpoenas demanded data and documents related to what the Office of the Inspector of General (OIG) and the U.S. Department of Housing and Urban Development (HUD) termed a high rate of defaults on insured loans and significant numbers of claims filed against the FHA mortgage fund as a result of those defaults.

In announcing the probe with FHA Commissioner David H. Stevens, Inspector General Kenneth Donohue said "The goal of this initiative is to determine why there is such a high rate of defaults and claims with these companies and whether there is wrongdoing involved. We aren't making any accusations at this time, we have no evidence of wrongdoing, but we will aggressively pursue indicators of fraud. We are members of the President's Financial Fraud Enforcement Task Force and today's activities reflect our commitment to seeking information on red flags that may arise from data analysis."

The 15 companies issued subpoenas are:

First Tennessee Bank N.A., Memphis, TN
Alethes LLC, Lakeway, TX
Security Atlantic Mortgage Co., Edison, NJ
Pine State Mortgage Corporation, Atlanta, GA
Birmingham Bancorp Mortgage Corporation, West Bloomfield, MI
Alacrity Financial Services, LLC, Southlake, TX
Assurity Financial Services, LLC, Englewood, CO
D and R Mortgage Corporation, Farmington, MI
Webster Bank, Cheshire, CT
Mac-Clair Mortgage Corporation, Flint, MI
Americare Investment Group, Inc., Arlington, TX
1st Advantage Mortgage, Lombard, IL
American Sterling Bank, Independence, MO
Sterling National Mortgage Company Inc., Great Neck, NY
Dell Franklin Financial LLC, Columbia, MD

Read the entire article CLICK HERE

Article from MND Jan. 11, 2010

Short Sale FAQs

noreply@blogger.com (Denice Thompson Neddo) — Tue, 05 Jan 2010 20:58:00 +0000

Short Sale FAQs
Frequently Asked Questions:

What is a short sale?

“Short sale” was an unfamiliar term until the recent real estate and mortgage crisis created the situation where the value of millions of properties in the United States were worth significantly less in value than the mortgages that secured them. During the late 1990s until early 2007, properties appreciated unrealistically and lenders offered loan products such as negative amortization loans, 95% financing, adjustable rate mortgages, stated income loans, and other products that created an atmosphere where the following occurred:

• people with little or no credit could acquire multiple properties with no documentation;
• people were using the equity in their appreciating properties to acquire more properties;
• as properties were appreciating, interest rates were historically low and people were refinancing their properties multiple times in a short period of time to pull out cash to use for capital expenses, paying down credit cards, and buying more properties. Essentially, a person’s home became a personal “ATM” machine.

In 2006, the excesses of the prior years began to take their toll as the adjustable rate mortgages and negative amortizing loans became delinquent. People could not make their mortgage payments and lenders began to foreclose. The current economic downturn has made it impossible for many individuals to sell their properties as they owe more to their lender than the property is worth.

A short sale or short payoff occurs when a lender agrees to accept less than the outstanding loan amount to satisfy the seller’s loan. A short sale allows both the lender and the distressed property owner to avoid foreclosure by selling the property at a loss. Since the Seller is requesting that the lender accept a short payoff, Sellers can not receive any funds at the time of closing. Short sales are warranted in the following situations:

• Seller owes the lender more than the value of the property and can not sell otherwise.
• A mortgage modification is not a possibility.
• Financial Hardship creating an inability to keep property (i.e. loss of job, medical hardship, divorce, etc).
• Over-extended borrower with multiple mortgages;
• Job transfer resulting in the forced sale of your home in a depressed real estate market.
• Without a short sale, foreclosure is imminent.

Why is a Short Sale Advantageous to the Lender?

Short sales are more advantageous to a lender than a foreclosure. Lenders are not in the business of managing and owning real estate, and a short sale offers the lender the ability to remove a bad debt from its books and lend the money again. Short sales are less expensive than completing the foreclosure process. By accepting a short sale, a lender is capping its loss immediately, rather than the expense and uncertainty of foreclosing on a property. Foreclosure can be very expensive to a lender because it could take up to a year or more to take back a property, and in a declining market, the property may be worth substantially less when the back obtains title than when the homeowner went delinquent. The bank may pay thousands of dollars to the foreclosure attorneys, sit on the property for another year, and then still have to pay the average 7% commission to a Realtor.

What does the Seller need to know about the Short Sale?

A seller initiates the short sale by contacting a real estate agent to draft a real estate contract with addenda and contingencies specific to short sale transactions. If the seller has already selected a listing Realtor, the seller needs to evaluate and make sure the Realtor understands how to list and price the property to attract the most offers. It is recommended that you hire a Realtor who is highly experienced in the intricacies of the short sale transaction and who have worked closely with lenders successfully closing deals. ASK FOR THE NAMES OF PAST SELLERS THAT ARE SATISFIED WITH THE AGENT'S RESULTS.

How Does Short sales benefit the Seller?

• The mortgage is marked satisfied at the credit bureau, not foreclosed;
• The seller is not faced with a deficiency judgment as in many foreclosures;
• The sellers credit does not suffer nearly the extent that it does if the property is foreclosed, and in many cases I can assist in helping to restore the sellers’ credit shortly after the short sale is processed. I represent investors and equity funds and may be able to facilitate a transaction for my clients.

What does the Buyer need to know about the Short Sale?

Education of the buyer is crucial to the short sale process and I work closely with the buyer and the buyer's agent throughout the transaction keeping them regularly informed of the status.

Buyers must understand the following about a short sale:

Why are short sales conditioned upon lender approval?

A short sale is a contract that needs acceptance from three parties; the buyer, the seller, and the seller’s lender(s). Without approval of the contract by lender holding the mortgage(s) on the seller’s property there is no fully executed contract. When I represent a buyer, I make certain that the seller or its agents have submitted all necessary documentation to the lender and manage the transaction from contract to closing;

How can the listed price be lower than the price required to satisfy the lender? How does this work?

Unless indicated in the listing that the lender has agreed to accept a set price, the price in the MLS listing may be completely unrealistic and ultimately rejected by seller’s lender. When a buyer makes an offer on a short sale, the lender will not approve the contract until they have sent an “independent agent” to the property to give a broker price opinion, also known as a BPO, or until an appraiser has completed a full real estate appraisal. The BPO or appraisal gives the lender an opinion of the fair market value of the property at current market conditions. The lender will usually use the BPO/appraisal as guidance when determining whether to accept a particular offer.

Why Is a seller having 2 or more mortgages more likely to fail doing a short sale than sellers who have only 1 mortgage?

A common scenario involves a seller who has a first and second mortgage (sometimes a third) and the offer will require that the first mortgage accept a short payoff, and the second mortgage to accept nominal sum (i.e. $1,000.00 to $3,000.00) to satisfy the second mortgage. In most circumstances, the first mortgage holder who agrees to a short payoff will not permit the second mortgage holder to receive any more than a nominal sum, because they know that if the property goes to foreclosure, the second mortgage holder will probably be wiped out and receive nothing. Frequently, the second mortgage holder will insist on more money than the amount allowed by the first mortgage holder resulting in an impasse. I have been been extremely successful in creating solutions to close transaction where approval is required by 2 or more lenders; however the buyer must be educated about the risks.

• The property may be sold at foreclosure auction before the closing can take place;
• The sellers may take “back up” offers while the lender is approving the buyer’s offer;
• Short sales will not close in 30 days;
• The seller may decide it is more advantageous file bankruptcy or allow the foreclosure;
• The buyer may be forced to use the seller’s “closing agent”;
• Short sales are “as is”

For a confidential appointment, please call Denice Neddo, Keller Williams Realty. Short Sale Specialist since 2003

503-759-9759 Portland, Oregon

360-607-4226 Vancouver, Washington

Foreclosures Up Q-3 Clark County, Washington

noreply@blogger.com (Denice Thompson Neddo) — Thu, 29 Oct 2009 15:52:00 +0000

Portland-Vancouver area foreclosures rise in Q3, expected to keep climbing
The number of homes in foreclosure continued to rise in the Portland-Vancouver metro area, according to a third-quarter tally released this week.

The area ranked No. 62 out of 203 U.S. metropolitan areas with a population of 200,000 or more in the third quarter ending in September, said California-based RealtyTrac. And with the Portland-Vancouver metro-area's unemployment rate running at 11.6 percent in September, some say foreclosure rates here could move higher before retreating. "It wouldn't shock me if it was at least two more years before we work our way through the troubled properties," said John Bruce, a mortgage banker with Lake Oswego-based Summit Funding Inc. There were 6,123 housing units in foreclosure in the third quarter in the Portland-Vancouver area, up more than 78 percent from 3,432 in foreclosure during the same period in 2008. For more, read Thursday's Columbian.

www.columbian.com

If you are facing foreclosure, you need to look at all of your options. Don't just hide, call and let's see what we can do together. I can't help if you don't call.

Denice Thompson Neddo
Licensed in Oregon and Washington
To Search Homes Like A Realtor click here
360-607-4226 - Vancouver
503-756-9759 - Portland
360-397-0478 - eFax
Denice@DeniceNeddo.com - Email

http://www.deniceneddo.com/
http://www.portlandvancouverhomesavers.com/

Foreclosures Are Up .. Act Now Avoid Foreclosure

noreply@blogger.com (Denice Thompson Neddo) — Thu, 15 Oct 2009 18:32:00 +0000

The number of households caught up in the foreclosure crisis rose more than 5 percent from summer to fall as a federal effort to assist struggling borrowers was overwhelmed by a flood of defaults among people who lost their jobs.

The foreclosure crisis affected nearly 938,000 properties in the July-September quarter, compared with about 890,000 in the prior three months, according to a report released Thursday by RealtyTrac Inc. That puts foreclosure-related filings on a pace to hit about 3.5 million this year, up from more than 2.3 million last year.

Unemployment is the main reason homeowners are falling into trouble. While the economy is likely out of recession, the unemployment rate — now at a 26-year high of 9.8 percent — isn't expected to peak until the middle of next year.

Mortgage companies sometimes allow unemployed homeowners to defer three to six months of payments while they are looking for a job. But there's little else they can do.

"The sheer scale of the problem is preventing the loan modification programs from having the kind of impact we'd all like" said Rick Sharga, RealtyTrac's senior vice president for marketing.
Last week, the Obama administration hailed a milestone in its mortgage relief effort, reporting that 500,000 homeowners have received help since the program was launched in March. But new defaults are still exceeding the number of borrowers getting help. Read the article...

Don't wait until you are drowning to put on a life jacket! Call today if you need information on avoiding foreclosure and becoming a statistic.

Denice Thompson Neddo
Licensed in Oregon and Washington
To Search Homes Like A Realtor click here
360-607-4226 - Vancouver
503-756-9759 - Portland
360-397-0478 - eFax
Denice@DeniceNeddo.com - Email

http://www.deniceneddo.com/
http://www.portlandvancouverhomesavers.com/

Not All Agents Undersand How to Negotiate a Short Sale

noreply@blogger.com (Denice Thompson Neddo) — Fri, 21 Aug 2009 13:46:00 +0000

Times have changed. Today we live in a true buyer’s market. Simply put, a buyer’s market exists when there are more homes on the market than there are buyers. If inventory–the number of homes on the market in a neighborhood–has been rising, it’s likely that the number of days a home stays on the market has increased as well. Couple that with declining sales figures over the last 2 quarters, and home buyers are in an enviable position to negotiate. Keep this in mind:

The number of homes on the market today are in direct proportion to the number of homeowners that are “upside down” in their mortgage. According to a recent study by FirstAmerican CoreLogic (FACL) over 8.3 million homes in the United States (that is about 20% of all homes with a mortgage) have mortgages that were larger than the value of the property at the end of 2008 that number has risen in 2009. When a homeowner is faced with financial decisions regarding their upside down mortgage, selling the property may be the last resort. When this happens, it is known as a “short sale”. Selling the property “short” of the amount owed on the mortgage.

Not all homeowners understand that the Realtor they select could actually be holding their hand and leading them directly to the courthouse steps and a foreclosure. The ins and outs of dealing with the lender are not something to be left to an agent that has little experience in short sales. Although the agent may very well have year of experience selling homes, short sales are not for the inexperienced. Ask yourself if you are an agent, or ask your agent these questions before you sign on the dotted line:

1-How many short sales have you successfully closed?
2-Do you know the process the lender will take to look at short sale offers?
3-Is the process the same for every bank?
4-How does the bank decide which offer they will accept?
5-How close to the foreclosure auction date can you present an offer?
6-How can you successfully postpone the auction date?
7-Do you need to be behind in your payments to complete a short sale?
8-Does the bank really want to avoid taking the property back?
9-How long does it take to close a short sale?
10-Is there a way to make sure that the bank will review an offer?

When asking your agent, if you get a hesitation on the answer to any of these questions, you need to seriously consider if this is the right agent for the job.

For more information and free forms, visit http://www.portlandvancouverhomesavers.com/

Denice Thompson Neddo

Licensed in Oregon and Washington

To Search Homes Like A Realtor click here

360-607-4226 - Vancouver

503-756-9759 - Portland

360-397-0478 - eFax

Denice@DeniceNeddo.com - Email*

915 Broadway, Suite 100, Vancouver, WA 98660

www.DeniceNeddo.com

How is a Short Sale Seller's Credit Affected?

noreply@blogger.com (Denice Thompson Neddo) — Tue, 11 Aug 2009 16:00:00 +0000

According to David Steep, division manager at Vitek Mortgage, Sacramento sellers, as well as sellers in other states, will take as big a hit on their credit report by going through foreclosure or giving the lender a deed-in-lieu of foreclosure, providing they are more than 30 days in arrears. Steep says the points lost on FICO score are as follows:

· Foreclosure or Deed-in-Lieu of Foreclosure

Both of these solutions affect credit the same. Sellers will take a hit of 200 to 300 points, depending on overall condition of credit. This means if a seller's FICO score before foreclosure was 680, it could dip as low as 380.

· Short Sale

Streep maintains that the effect of a short sale (providing the sellers are more than 59 days late) on a seller's credit report is identical to that of a foreclosure. The ding on credit will show up as a pre-foreclosure in redemption status, Steep says, which will result in a loss of 200 to 300 points. This means a short sale with a previous FICO of 720 will see it fall from 520 to 420.

My personal experience has been somewhat different. I assisted a client in short sale for a seller who was 90 days behind on her mortgage. A few months after her short sale closed, she checked her credit report and found that her FICO fell 100 points to 671. I believe every seller's situation varies.

Contact me for more information on Short Sales. Denice@DeniceNeddo.com

Denice Thompson Neddo
Licensed in Oregon and Washington
To Search Homes Like A Realtor click here
360-607-4226 - Vancouver
503-756-9759 - Portland
360-397-0478 - eFax

http://www.deniceneddo.com/
http://www.portlandvancouverhomesavers.com/

2538 N Watts, Portland, Or & Vancouver, Wa, OR | Powered by Postlets

noreply@blogger.com (Denice Thompson Neddo) — Wed, 29 Jul 2009 21:10:00 +0000

2538 N Watts, Portland, Or & Vancouver, Wa, OR | Powered by Postlets

Shared via AddThis

Beware! Loan Mods Can Be Loan Fraud!

noreply@blogger.com (Denice Thompson Neddo) — Fri, 24 Jul 2009 16:10:00 +0000

A loan-modification company based in Southern California allegedly spent $70,000 a week on radio and television advertising for its sales force to generate 500 calls a day from desperate homeowners facing foreclosure around the country.

Employees reportedly manned 44 office cubicles, working staggered shifts in "a well-appointed telephone boiler room" to generate about $6.2 million in revenue for Anaheim, Calif.-based H.E. Servicing Inc. and related businesses, but helping only about one in 10 of the nearly 3,000 borrowers who paid up-front fees of $1,000 or more.

Those are among the preliminary findings in a report by a court-appointed receiver assigned to take over H.E. Servicing on July 9, after the company and dozens of others were shut down by state and federal officials this month.

The U.S. Federal Trade Commission said its coordinated effort with 23 state attorneys general targeting mortgage-rescue scams resulted in lawsuits against 178 companies accused of deceptive marketing of foreclosure-rescue and loan-modification services (see story).

H.E. Servicing Inc. was one of the aliases used by US Foreclosure Relief Corp., according to a lawsuit filed against the company by the FTC and the states of California and Missouri.

The case against H.E. Servicing sheds light on how one company's attempt to avoid California's restrictions on charging up-front fees for providing loan-modification services led to charges that it employed deceptive marketing practices.

'Consumer deception'

Thomas McNamara, the receiver appointed to examine the operations and finances of H.E. Servicing and other businesses connected to US Foreclosure Relief Corp., said he found "multiple examples of zealous sales techniques, which, by any standard, crossed the line into express consumer deception."

California has imposed restrictions on the collection of advance fees for providing loan-modification services -- only licensed real estate brokers with preapproval letters may engage in the practice -- but those restrictions do not apply to lawyers or law firms (see story).

In his report, McNamara said defendant George Escalante had dissolved the operations of a previous loan-modification company after being contacted by the Orange County District Attorney's Office in October 2008.

After locating a recent law-school graduate to partner with through an ad he placed on Craigslist.org, Escalante again began providing loan-modification services through H.E. Servicing, the report said.

The lawyer -- and another who replaced him when Escalante's original partner "expressed a desire to withdraw from the business as he saw it as high risk" -- were paid a share of the fees collected from each client, totalling about $620,000, the report said. But McNamara found little evidence they performed any work.

"Despite defendants' limited efforts to create the illusion, this was not a law firm ... (but) Escalante's business," McNamara's report said. "He paid the rent, hired the employees, outfitted the offices, ran the finances, and ultimately controlled the operations."

Read the rest

If you are unsure about wether or not you could qualify for a loan modification, CALL ME! I work with LEGITIMATE Loan Modification Firms that can help! Do not wait, the worst you can do is do nothing!

Denice Thompson Neddo
Licensed in Oregon and Washington
To Search Homes Like A Realtor click here
 360-607-4226 - Vancouver
 503-756-9759 - Portland
 360-397-0478 - eFax
 Denice@DeniceNeddo.com - Email

http://www.deniceneddo.com/
http://www.PortlandVancouverHomeSavers.com

No Skin In The Game, Is It To Blame?

noreply@blogger.com (Denice Thompson Neddo) — Mon, 06 Jul 2009 20:38:00 +0000

Read the following and look at these percentages, the percentages are based on the period of time since the steep rise in foreclosures began -- the third quarter of 2006 -- during which more than 4.3 million homes went into foreclosure.

51% of foreclosed homes had prime loans, not subprime loans. What does this mean? Simply stated, it means that people with good credit, not “subprime” credit, are now in foreclosure. Moreover, the foreclosure rate for prime loans grew by 488% compared to a growth rate of 200% for subprime foreclosures during this time.

An analysis done by Stan Liebowitz, of the Wall Street Journal on loan-level data, collected from McDash Analytics, of Lender Processing Services, Inc., concluded that other loans where lenders were largely at fault -- such as "liar loans," you know the loans where lenders never attempted to validate a borrower's income or assets. . . is a misconception. The data shows otherwise, it appears that the “liar loans” and the “subprime loans” are not particularly to blame for the raise in the foreclosure rate.

Foreclosure vs Bankruptcy: Which is Better

noreply@blogger.com (Denice Thompson Neddo) — Wed, 01 Jul 2009 18:07:00 +0000

All of the talk these days about falling home values, foreclosures, short sales, and the tight economy may bring this question to the top of your mind. Either of these options will stay on your credit report for many years to come. The next time you decide to apply for credit to buy a car, purchase new furniture, get a cell phone, or even apply for insurance the decisions you make today are bound to affect your credit buying power in the future. Being considered a credit risk will mean that you pay higher interest rates and most times higher insurance premiums.

If you are having trouble paying your house payment, you need to look at all of your finances. Not just the house payment, but the car payment, the credit card payments, your cable TV bill, how much are you spending a month on food, entertainment, haircuts, birthday gifts and other expenses. If you have already cut your budget, consider a second income. Maybe even ask for financial assistance short term from a friend or family.

Of course, there is always the option to negotiating a loan modification with your lender. Think this option over very carefully before you decide to extend your mortgage for 40 years. I have not heard of one mortgage lender that has reduced the Principal amount owed on mortgage. Loan modification certainly may work if you are in need of switching from an interest only, high interest, or adjustable rate mortgage, but if you only need to lower your payment make sure you have determined if you really can afford your home. You may end up in foreclosure later anyway, no matter what steps you take.

Consider a short sale. Your lender may agree to accept an offer from a potential buyer to purchase your home for less than you owe on that mortgage. Although this is not the best choice for your credit, as a short sale will show up on your credit report, but so will all of those late payments until you get rid of the mortgage.

For distressed homeowners that may decide bankruptcy is the only way to go, make sure you are not going on the advice of only one person. Consult with a CPA, make sure that you talk to an attorney, and consult with a Realtor to see how much your house is really worth in today's market.

As with areas of your life, prevention is better than a cure. Work hard to avoid foreclosure and bankruptcy.

If you would like contact information for a real estate attorney, CPA or Realtor in your area, contact me at Denice@DeniceNeddo.com

The Next Foreclosure Wave Is Coming

noreply@blogger.com (Denice Thompson Neddo) — Tue, 02 Jun 2009 13:31:00 +0000

The tide of troubled loans, which first struck high-risk borrowers who did not qualify for conventional mortgages, is now spreading to people with good credit who purchased more expensive homes.

This time, it involves borrowers who took out mortgages known as Alt-A loans. Like the subprime loans that began imploding in 2006, these loans offered enticing low introductory payments that enabled many borrowers to buy or refinance homes that were pricier than they could otherwise afford.

Now, those borrowers increasingly are discovering the true cost of their loans. When the introductory period ends, monthly payments can jump 50 percent or more on the typical Alt-A loan, far higher than many borrowers can afford.

Rising unemployment and falling home prices could thrust many Alt-A borrowers into foreclosure when their payments jump.

Many will be unable to refinance because their homes have dropped so sharply in value. Since home prices peaked in 2005, the median has tumbled. A quarter of the homes are worth less than what the borrowers owe on their mortgages.

Alt-A loans — short for alternative loans — is a mid-tier category of mortgages for borrowers with solid credit. It sits between the conventional loans available to people with top-notch credit and subprime loans, which were created for high-risk borrowers.

Some borrowers turned to Alt-A loans to buy homes they otherwise couldn’t afford. Others used them to refinance their homes, fleeing rising payments on interest-only loans and other risky mortgages.

In a common scenario, buyers used subprime or interest-only loans featuring low, fixed payments that jump after two, three or five years. Then they refinanced into “pay-option” loans — the most popular Alt-A type — to keep payments low.

These loans allow borrowers to choose one of four payment options every month, including the option to make a minimum payment that doesn’t even cover the monthly interest costs.

There is help, if you don't qualify to refinance, if you are facing foreclosure, call me!

Denice Thompson Neddo
Licensed in Oregon and Washington
Click Here to Search Homes Like a REALTOR
360-607-4226 Vancouver
503-756-9759 Portland
360-397-0478 eFax

Denice@DeniceNeddo.com Email
* 915 Broadway, Suite 100 Vancouver, WA 98660
http://www.salmoncreekonline.com/
DeniceNeddo.com
DeniceNeddo.YourKWAgent.com

PortlandVancouverHomesavers.com

Obama’s Making Home Affordable Plan -Will It Work

noreply@blogger.com (Denice Thompson Neddo) — Wed, 06 May 2009 21:16:00 +0000

President Obama’s Making Home Affordable plan, announced Wednesday, aims to help up to 9 million homeowners afford their homes in the wake of the current economic crisis. An allied program, called the Home Affordable Refinance can help another 5 million with relatively steady mortgages, but declining home values. If both plans succeed, they will not only keep people in their homes—they can also curb foreclosures and cushion their impact on community and national scales. But beyond all the hype around these plans, many of us are still in the dark about who really benefits. Who gets what? How do you know if you’re eligible?

Here’s a rundown of the qualifications laid out in the programs.

Refinancing options

The refinancing plan is offered to Fannie Mae or Freddie Mac loans on properties occupied by the homeowner. The first mortgage cannot exceed 105% of the current value of your home. That means for a $300,000 home, your total debt cannot go over $315,000. You can still refinance a second mortgage provided the first one meets the 105% requirement.Cash out options will not be available during the refinance, so they can’t be used to pay off other debts. Applications will be accepted until June 2010.

Loan Modification

Borrowers may no longer have to be behind on the mortgage to qualify for a loan modification if they fall within the guidelines. Although priority will be given to delinquent borrowers, the main requirement is debt-to-income ratio (DTI) of 31%. This means that your total monthly dues (including insurance, taxes, and association dues) must exceed 31% of your income, which qualifies you as being in hardship. The loan modification option applies to mortgages originated on or before January 1st.Your home must also be your primary residence. That means it can’t be owned by an investor or used as a secondary home. The plan also puts a price cap on loans for single-family homes: those valued over $759,750 will not be eligible.

Read the entire article here:

Denice Thompson Neddo
Licensed in Oregon and Washington
To Search Homes Like A Realtor click here
360-607-4226 - Vancouver
503-756-9759 - Portland
360-397-0478 - eFax
Denice@DeniceNeddo.com - Email
915 Broadway, Suite 100, Vancouver, WA 98660
http://www.deniceneddo.com/
**Please consider the environment before printing this message.

The Truth About Loan Mods

noreply@blogger.com (Denice Thompson Neddo) — Sat, 02 May 2009 16:41:00 +0000

Just because you want a Loan Modification, doesn't mean you will QUALIFY for one. Here is the truth, no one seems to want to hear it, but here it is:

YOU STILL HAVE TO HAVE AN INCOME THAT SUPPORTS AND QUALIFIES YOU FOR THE LOAN!

The loan modification has to work for the lender, too. Why on earth would any bank make a bad loan now, especially now? If you have lost your job, and have no way to repay the loan, modified or not, why would the bank want to take on that risk?

The few loan modifications that I have seen approved, have involved adding any missed payments and fees to the remaining principle of the loan, lowering the interest rate, and lengthening the term of the loan (usually to a 40 year amortized loan). This type of a modification will lower your payment, but the house is still, more likely than not, worth less than you owe.

If you feel this is unfair, that you have heard on the TV, radio, and read in the newspaper and online that the government is helping people stay in their homes, and you are not one of them, you must be realistic. A bank must minimize risk, especially now in times where so many homeowners are in over their head with a mortgage that exceeds the value of the house.

Your alternative may be to simply sell the house and move on. Do some research on Short Sales and see if this is an option for you. But don't wait too long. If you have missed several payments on your mortgage and other debt, you may not be able to find a rental. Act early! If you let the bank foreclose on the property, that can affect your credit negatively for the next decade! If you have only missed a payment or two, DO SOMETHING NOW!!!

The longer you wait the harder and more expensive it will be to the effects on your credit score.For more information on Short Sales and Loan Modifications, contact me.

Denice Thompson Neddo
Licensed in Oregon and Washington
To Search Homes Like A Realtor click here
360-607-4226 - Vancouver
503-756-9759 - Portland
360-397-0478 - eFax
Denice@DeniceNeddo.com - Email
* 915 Broadway, Suite 100, Vancouver, WA 98660
www.DeniceNeddo.com
Please consider the environment before printing this message.

noreply@blogger.com (Denice Thompson Neddo) — Mon, 27 Apr 2009 17:46:00 +0000

Beware of Fees for Modification - Both Federal and State Law Could Restrict Them
By Phillip L. Schulman, Esq.

RISMEDIA, April 27, 2009-With record numbers of homeowners facing foreclosure, more and more mortgage lenders are using loan modifications as a method to keep consumers in their homes. At the same time, credit service organizations are expanding their focus from credit repair services that help consumers obtain financing to services designed to assist consumers in negotiating loan modifications…and new loan workout companies seem to pop up every day.

As a result, these entities are looking to real estate professionals as a source for customers who may be in danger of defaulting on their mortgage loans. In exchange for the referral of customers, many credit service organizations are willing to pay a fee. But, this fee may not be permissibl. Not only could the fees raise issues under the Real Estate Settlement Procedures Act (RESPA), but state law could require certain disclosures or prohibit the fees altogether.

While we recognize that many legitimate and law-abiding companies provide valuable services to homeowners every day, unfortunately, news of fraudulent companies tend to overshadow these success stories. Should an agent find himself aligned with one of these fraudulent companies, the damage to their reputation could be significant. At the end of the day, in addition to these legal concerns, REALTORS® also must ensure that they promote and protect the interests of their clients.

This column is brought to you by the NAR Real Estate Services group.

Read the entire article here RIS Media

Not All Agents Undersand How to Negotiate a Short Sale

noreply@blogger.com (Denice Thompson Neddo) — Fri, 24 Apr 2009 02:55:00 +0000

Times have changed. Today we live in a true buyer's market. Simply put, a buyer's market exists when there are more homes on the market than there are buyers. If inventory--the number of homes on the market in a neighborhood--has been rising, it's likely that the number of days a home stays on the market has increased as well. Couple that with declining sales figures over the last 2 quarters, and home buyers are in an enviable position to negotiate.

Keep this in mind: The number of homes on the market today are in direct proportion to the number of homeowners that are "upside down" in their mortgage. According to a recent study by FirstAmerican CoreLogic (FACL) over 8.3 million homes in the United States (that is about 20% of all homes with a mortgage) have mortgages that were larger than the value of the property at the end of 2008 that number has risen in 2009.

When a homeowner is faced with financial decisions regarding their upside down mortgage, selling the property may be the last resort. When this happens, it is known as a "short sale". Selling the property "short" of the amount owed on the mortgage.

Not all homeowners understand that the Realtor they select could actually be holding their hand and leading them directly to the courthouse steps and a foreclosure. The ins and outs of dealing with the lender are not something to be left to an agent that has little experience in short sales. Although the agent may very well have year of experience selling homes, short sales are not for the inexperienced.

Ask yourself if you are an agent, or ask your agent these questions before you sign on the dotted line:

1-How many short sales have you successfully closed?
2-Do you know the process the lender will take to look at short sale offers?
3-Is the process the same for every bank?
4-How does the bank decide which offer they will accept?
5-How close to the foreclosure auction date can you present an offer?
6-How can you successfully postpone the auction date?
7-Do you need to be behind in your payments to complete a short sale?
8-Does the bank really want to avoid taking the property back?
9-How long does it take to close a short sale?
10-Is there a way to make sure that the bank will review an offer?

If you as an agent, or when asking your agent get a hesitation on the answer to any of these questions, you need to seriously consider if this is the right agent for the job.

For more information and free forms, visit

http://www.portlandvancouverhomesavers.com/

Denice Thompson Neddo

Licensed in Oregon and Washington

To Search Homes Like A Realtor click here

360-607-4226 - Vancouver

503-756-9759 - Portland

360-397-0478 - eFax

Denice@DeniceNeddo.com - Email

* 915 Broadway, Suite 100,

Vancouver, WA 98660

www.DeniceNeddo.com

Real Estate Professionals BEWARE!

noreply@blogger.com (Denice Thompson Neddo) — Mon, 06 Apr 2009 15:59:00 +0000

REAL ESTATE PROFESSIONALS BEWARE:

Before you or your clients pay any fees to any company, make sure to learn the legal facts and truths to the alternatives to foreclosure. You need to learn more about the following topics:

Foreclosure's effect on credit score
The consequences of Bankruptcy
The Timing and Success of Short Sales
Loan Modifications and their failure rates

Educate your clients:
35% Of homeowners with a mortgage have little or no equity
16% Of all mortgages will be in foreclosure in the next four years.

Turn your short sales into profits! When you are ready to start making more money with short sales.

LET US WORK THEM FOR YOU, AND GET PAID YOUR COMMISSIONS!

Contact me for more information:

Denice Thompson Neddo
Licensed in Oregon and Washington
Click Here to Search Homes Like a REALTOR
360-607-4226 Vancouver
503-756-9759 Portland
360-397-0478 eFax

Denice@DeniceNeddo.com Email
* 915 Broadway, Suite 100 Vancouver, WA 98660
http://www.salmoncreekonline.com/
DeniceNeddo.com
DeniceNeddo.YourKWAgent.com
portlandvancouverhomesavers.com

US Mortgage Delinquency Rates

noreply@blogger.com (Denice Thompson Neddo) — Wed, 18 Feb 2009 14:24:00 +0000

To understand the changes in the housing market, check out the table for U.S. loans as reported by the Bloomberg non-agency database comprised of over 45 million securitized loans.

Bloomberg.com

The numbers are not getting smaller.

If you need help, if you are struggling or know someone that is struggling with their mortgage payments, have them contact me, there is help!

DON'T WAIT TOO LONG!!

Short Sale Basics

noreply@blogger.com (Denice Thompson Neddo) — Thu, 29 Jan 2009 19:55:00 +0000

A short sale is what I like to call a “not as bad” alternative to going through with a foreclosure. Here is how it works: the home sells for a market price that is less than, or “short” the amount owed on the loan or loans that were used to purchase the property. The owner then pays the lender, who must agree to the sale, and the lender forgives the difference between the sale price and the mortgage amount. In most cases, the lender will forgive the entire amount owed, however, in some cases, depending on what type of loans there are on the property, the lender may ask the homeowner to pay back the difference, or a portion of the difference. THIS IS WHY YOU MUST WORK WITH SOMEONE WHO UNDERSTANDS SHORT SALES COMPLETELY BEFORE YOU SIGN ANYTHING!

So, why would a lender agree to such a deal? Because the actual process of foreclosing on a home is expensive for the banks- AND - the bank is not getting paid interest and principal on the loan during the time it takes to complete the process. So it can often be in the bank’s best interest to simply cut its losses and sell short.

You can invest in short sales
A short sale can be a real win-win-win for you — the investor, the homeowner, and the lender. When you buy a house after the owner is already delinquent (meaning more than 90 days past due, and/or the lender has already started the foreclosure process) but before the lender actually forecloses on the home, it’s called a pre-foreclosure, and you’ll be part of a short sale. Here is what you should know:

1. Know the market. If you don’t already live where you plan to invest, make sure you get to know your investment market well - what neighborhoods you should stay away from, where great hidden deals might be, where the hottest new development are, etc.

2. Develop an investment strategy. Pre-foreclosure investing is like any other type of real estate investing - develop a strategy for what you want to accomplish, the risks you are willing to take, and how long you plan to be investing and then stick to that strategy.

3. Develop your best practices. There are a lot of pre-foreclosure buying techniques out there. Decide which is best for you, given your investment strategy.

4. Be a bit skeptical. Just because a home is in pre-foreclosure doesn’t mean it’s automatically a good deal. Use a formula for determining your return.

5. Ask for help. Pre-foreclosure investing takes a lot of work. Invest in the help of a trustworthy team. Leverage a real estate agent experienced in short sales to help you determine how to make an offer that’s fair for you and the seller (the bank), based in part of what other similar pre-foreclosure or foreclosed homes in the same neighborhood have recently sold for.

6. Make contact with mortgage lenders. Often, you’ll get the best deal if you can negotiate a good purchase price with the seller and negotiate with the bank to forgive a portion of the debt (the difference between the sales price and the loan balance, for example).

7. Move quickly. You’ll need to act quickly once you find a pre-foreclosure property that you want to buy - before other investors beat you to it. At the same time, you don’t want to be too rushed or you may make a decision you’ll regret later, once you do make an offer, be prepared to hurry and then wait. These banks are dealing with a large number of files. Getting to the right department, and talking with the right person can take time. Be patient.

8. Be committed. Pre-foreclosure investing is not for the weekend investor. It takes discipline and commitment. Even with the help of foreclosure listing services, you’ll still have to do legwork to contact the owner, arrange the deal, fix up the house, and re-sell it before you see your investment return.

9. Know the law. There is more risk involved in a short sale than in a traditional home sale. Read up on foreclosure laws and ask your real estate agent to recommend a good real estate attorney with experience helping people purchase homes in pre-foreclosure. In Washington State, a detail as tiny as using the wrong font size on your documents could hold up the transaction or — worse — land you in legal trouble.

10. Remember to add a buffer. Pre-foreclosure homes typically need repairs– sometimes minor, sometimes major. Have the home inspected by a professional home inspector before you sign a sales agreement and be sure to add in the cost of the repairs the inspector recommends. If you only think about the purchase price when you’re calculating potential return on your investment, you’ll be disappointed. Make sure to leave a buffer, or get a quote on repair costs from a professional contractor.