http://www.myfoxla.com/dpp/news/local/stranded-kid-hikers-and-dog-rescued-20091221
Hi, I wanted to send you a video. ]]> http://epro91326.wordpress.com/2009/12/22/rescue-in-porter-ranch/feed/ 0 4re.biz http://epro91326.wordpress.com/2009/12/22/2-girls-airlifted-from-porter-ranch/ http://epro91326.wordpress.com/2009/12/22/2-girls-airlifted-from-porter-ranch/#comments Tue, 22 Dec 2009 08:21:14 +0000 Dave Kelly, GRI http://epro91326.wordpress.com/2009/12/22/2-girls-airlifted-from-porter-ranch/ ]]> ]]> http://epro91326.wordpress.com/2009/12/22/2-girls-airlifted-from-porter-ranch/feed/ 0 34.272435 -118.556169 34.272435 -118.556169 4re.biz http://epro91326.wordpress.com/2009/12/18/lenders-to-halt-foreclosure-evictions-over-the-holidays/ http://epro91326.wordpress.com/2009/12/18/lenders-to-halt-foreclosure-evictions-over-the-holidays/#comments Fri, 18 Dec 2009 20:41:53 +0000 Dave Kelly, GRI http://epro91326.wordpress.com/2009/12/18/lenders-to-halt-foreclosure-evictions-over-the-holidays/ ]]>

Fannie Mae and Freddie Mac will suspend foreclosure evictions from December 19, 2009 through January 3, 2010.  To help struggling families over the holidays, both owner-occupants and tenants living in properties foreclosed upon by Fannie Mae will not be evicted.  Freddie Mac’s suspension of evictions will be limited to properties up to four units.

In a similar move, Citigroup Inc. will suspend foreclosure sales and evictions for 30 days through January 17, 2010 for loans it owns.  Citigroup’s foreclosure moratorium, however, does not extend to loans it services on behalf of other investors.  Given these developments, other lenders may follow suit, so check with the lender if appropriate.

C.A.R. provided the above info.

Q 4.  What is “nonrecourse” debt?

A Under California law, a debt is considered “nonrecourse” when a loan is made under either one of the following two circumstances:

(1)  When the loan is made to purchase a one-to-four unit property and the borrower intends to occupy at least one of the units, or

(2)  When the seller carries back financing for all or a portion of the purchase price of any real property.

(Cal. Code Civ. Proc. § 580b.)

In the event of default by the borrower, the lender, or financing seller, is restricted to recovering the property with no right to proceed against the borrower for any deficiency should the property be worth less than the loan amount.

Q 5.  What is “recourse” debt?

A Under California law, a “recourse” debt is one in which neither of the two exemptions in Question 4 occurs.

Examples of recourse debt are refinances of existing mortgages, home improvement loans, equity lines of credit, and loans other than seller financing, securing a debt for purchase of property that is not an owner-occupied one-to-four unit property. The lender is not limited to taking the property back and the borrower may be personally liable on the debt.  If the lender chooses to foreclose using a trustee’s sale, then the lender waives the right to go after the borrower for the deficiency despite the fact that the loan was a recourse debt.  In order to go after a deficiency judgment, the lender must go through a judicial foreclosure process.

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(Credit for above info goes to the C.A.R. Legal Department.)

The Federal Housing Administration (FHA) is proposing raising minimum credit scores for borrowers who receive FHA-backed mortgages, increasing down payment requirements, and limiting the amount of money sellers can provide toward closing costs. The proposed changes are part of an effort to shore up the agency’s finances, which have been hit with rising defaults to its mortgage insurance program.

MAKING SENSE OF THE STORY
Historically, the FHA has played a critical role in propping up the housing market by insuring lenders against default after the mortgage market failed. Currently, the agency guarantees approximately 30 percent of all home loans and 20 percent of refinancings. In the past, the FHA has resisted raising down payments or insurance premiums, fearing it would be shutting out qualified borrowers and stunting the housing market’s recovery.
The FHA is hoping that the proposed changes, including requiring that borrowers bring more cash to the closing table, will ensure that borrowers are less likely to default on their loans. Officials at FHA have yet to determine how much cash will be required.
Up-front cash can include down payments as well as other payments. Currently, FHA borrowers can put down as little as 3.5 percent. One lawmaker has introduced legislation that would require FHA borrowers to put down a minimum of 5 percent.
The agency also currently allows sellers to provide up to 6 percent of the home’s value toward closing costs or down payments. Secretary of Housing and Urban Development (HUD) Shaun Donovan has said he wants the maximum permissible level to be lowered to 3 percent, in line with industry norms.
The FHA has decided “for the time being” to raise its minimum credit score requirements for new borrowers. The new requirements have yet to be determined. Presently, borrowers with credit scores as low as 500 may qualify for an FHA loan.

A walk around Lake Balboa is a refreshing break from the high winds in Porter Ranch today!

After the Senate gave final approval last night without a dissenting vote, the House of Representatives voted overwhelmingly this afternoon to pass legislation containing an extension and expansion of the homebuyer tax credit, completing Congressional action and sending the tax credit to President Obama for his signature, possibly as early as tomorrow.

The $8,000 homebuyer tax credit for first-time buyers, due to expire in 25 days, will be extended through April 30 of next year and buyers will have an additional two months, until the end of June, to close. First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

For the first time, the new legislation makes buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.

The legislation takes effect December 1 and is not retroactive. Both credits are available only for primary residences, not second homes or investment properties.

Effective October 11, 2009, the Buyer’s Choice Act prohibits an REO lender selling residential property up to four units from directly or indirectly requiring the buyer to purchase escrow services or title insurance from any particular company. A buyer, however, who has received written notice of the right to make an independent selection, may agree to the REO lender’s escrow or title recommendations. An REO lender that violates this law can be held liable for three times the charges the buyer incurred, whereas a violation by the seller’s agent may be subject to license disciplinary action. This law expires on January 1, 2015. CA Assembly Bill 957.

New home sales in California remained at historic low levels in August, signaling that the state’s housing sector may be slow to recover from a stubborn recession, according to a recent report from the California Building Industry Association (CBIA).
“While there are some encouraging signs in California housing markets, activity remains low,” said CBIA President and CEO Liz Snow. “These reports are evidence that housing markets remain depressed and continue to hamper a broader economic recovery in California.”
During August, 2,617 new homes and condominiums were sold in the subdivisions tracked by Hanley Wood Market Intelligence (HWMI), compared with 3,001 for the same period a year ago, a 12.8 percent decline. Sales of single-family homes were down by 20 percent, while sales of townhomes and “plexes” – duplexes, triplexes, etc. – were down 35 percent and sales of condominiums were 26 percent higher than a year ago, according to the CBIA report.