LAWS SLOWING FORECLOSURE PROCESS

Foreclosure filings down 12% in September

New state laws slowing foreclosure process

By Inman News

New state laws that require loan servicers to give advance notice before filing a notice of default helped push down foreclosure-related filings by 12 percent nationwide in September, data aggregator RealtyTrac.

California, which accounts for nearly one-third of foreclosure activity, passed legislation that took effect in September requiring lenders to make contact with borrowers 30 days before filing a notice of default. Notices of default in California dropped 51 percent in September, with a corresponding “significant impact” on national numbers, RealtyTrac said.

RealtyTrac said notices of default fell 66 percent in North Carolina, a state that now requires lenders to provide homeowners and the state commissioner of banks 45 days’ advance warning of plans to file a notice of default.

Lenders file notices of default as the first step in the foreclosure process, in most cases after borrowers fail to make two or more payments. A notice of default starts the clock ticking on a forced auction sale or bank repossession of a delinquent borrower’s home.

Foreclosure-related filings include default notices, auction sale notices and bank repossessions. Because many borrowers refinance, get current again on their loans, or negotiate a short sale or loan modification with their lender, not all properties subjected to filings are actually repossessed or sold by lenders.

But in many instances, the new laws governing notice of default filings may only delay lenders from initiating the foreclosure process.

After a new Massachusetts law took effect in May requiring that lenders give homeowners a 90-day right-to-cure notice, initial foreclosure filings were lower than normal for the following three months. But initial foreclosure filings were up 465 percent from August to September, RealtyTrac said, as the first loans subject to the new rule emerged from the 90-day window.

Nationwide, RealtyTrac counted foreclosure related-filings on 265,968 properties in September, down 12 percent from August but up 21 percent from a year ago.

At the state level, Nevada saw foreclosure-related filings jump 11 percent in September. The rate of foreclosure-related filings in Nevada — one for every 82 homes — was the highest in the nation, and more than five times the U.S. average of one filing per 475 homes.

With one filing for every 178 homes, Florida moved from fourth place to second on the list of states with the highest foreclosre rates.

In California, the dramatic decline in notices of default contributed to a 32 percent decrease in foreclosure-related filings. Still, one in 189 homes was subjected to a filing, the third-highest rate in the nation.

Arizona, Georgia, Michigan, Ohio, New Jersey, Indiana and Colorado rounded out the list of the 10 states with the highest foreclosure rates.

For the third quarter, RealtyTrac counted foreclosure filings on 765,558 homes, up about 3 percent from the second quarter and 71 percent from a year ago.

Six states — California, Florida, Arizona, Ohio, Michigan and Nevada — accounted for more than 60 percent of foreclosure-related filings.

The 10 cities with the highest foreclosure rates among the nation’s 100 largest metropolitan areas in the third quarter were located in California, Florida, Arizona and Nevada.

They were Stockton, Calif.; Las Vegas, Nev.; Riverside-San Bernardino, Calif.; Bakersfield, Calif.; Fort Lauderdale, Fla.; Phoeniz, Ariz.; Sacramento, Calif.; Orlando, Fla.; Fresno, Calif.; and Oakland, Calif.

Search Bank Owned Homes at CentralValleyHomes.com 

Carol Perdew
Prudential California Realty
(209) 239-7979

 

First Time Homebuyer Home Loans

C a l H F A  H o m e o w n e r s h i p  P r o g r a m s

FIRST MORTGAGE LOAN PROGRAMS CalHFA Conventional Loans interest only PLUSSM This conventional mortgage loan offers up to 95% financing and allows borrowers to pay only the interest for the first five years of a 35-year term. After that, borrowers pay principal and interest at the same low, fixed interest rate for the remaining 30 years. 40-Year Fixed Mortgage This conventional mortgage loan offers up to 95% financing with a 40-year term and a low, fixed interest rate. 30-Year Fixed Mortgage This conventional mortgage loan offers up to 95% financing with a 30-year term and a low, fixed interest rate. Government Insured/Guaranteed Loans 30-Year Fixed Government Insured/Guaranteed Mortgage This program is for mortgage loans that are insured or guaranteed by FHA, VA or USDA and features a 30-year term with a low, fixed interest rate. Real Estate Owned (REO) Loan Programs CalHFA Community Stabilization Home Loan Program This program helps first-time homebuyers purchase vacant homes that are owned by participating financial institutions in certain areas of California. = DOWN PAYMENT ASSISTANCE LOAN PROGRAMS Affordable Housing Partnership Program (AHPP) A joint effort by CalHFA and cities, counties, redevelopment agencies and housing authorities whereby a deferred payment subordinate loan from a locality is utilized by the first-time homebuyer to assist them with down payment and/or closing costs. CalHFA Housing Assistance Program (CHAP) Offers a deferred-payment second loan of an amount up to the lesser of two percent (2%) of the purchase price or appraised value. California Homebuyer’s Downpayment Assistance Program (CHDAP) Offers a deferred-payment junior loan of an amount up to the lesser of three percent (3%) of the purchase price or appraised value. Extra Credit Teacher Home Purchase Program (ECTP) A low interest rate CalHFA first loan, together with a forgivable interest CalHFA junior loan to assist eligible teachers, administrators, staff members and classified employees to purchase their first home. High Cost Area Home Purchase Assistance Program (HiCAP) Designed to assist first-time homebuyers in the highest housing cost areas of the state. School Facility Fee Down Payment Assistance Program (SFF) A conditional grant program that provides assistance to buyers of newly constructed homes throughout California.

Search for homes at wwwCentralValleyHomes.com

CAROL PERDEW
Prudential California Realty
(209) 239-7979
www.CentralValleyHomes.com

FORECLOSURE PREVENTION SUGGESTIONS

This informative article gives suggestions for those borrowers who are having payment problems. This includes some great information and Web sites directed entirely to helping prevent needless foreclosures.  You can know your options to determine the best possible outcome.  This provides some useful resources that are available.

What Should Borrowers Do When They Need Help?

by Jack M. Guttentag
Featured on Yahoo Finance

An uncomfortably large proportion of my mail these days is from borrowers with serious payment problems. In most cases, I can’t help them for the reasons discussed below. With a few common cases, I try.

In one typical case, the borrower has two mortgages which add to an amount well in excess of the value of the property, and can no longer afford both payments. If the same lender holds both mortgages, and if the borrower can afford a reduced payment, his objective should be to persuade the mortgage lender to modify the notes to lower the payments.

The burden of proof is on the borrower. He has to document that he will be forced to default on the existing mortgages but could afford the payment on a new mortgage that would cost the lender less than foreclosure.

A Greater Challenge

If the second mortgage is held by a different lender, the challenge is greater.
The first mortgage lender is unlikely to modify the note so long as the second mortgage lender remains in a position to foreclose.

I suggest that borrowers in this situation approach the second mortgage lender first, with the objective of inducing that lender to get out of the way. The borrower can offer the second mortgage lender an unsecured promissory note for a portion of what is owed on the second mortgage. Since the second mortgage loan has little or no value except as a nuisance, any reasonable offer is likely to be accepted.

The situation described above is only one of many in which troubled borrowers may find themselves. Rarely do they communicate all the information that I would need to find the best possible outcome. Not all have second mortgages, but some have large amounts of non-mortgage debt to complicate the process. While many have negative equity in their properties, some have positive equity. In some cases a loss of income appears temporary, in other cases permanent; in some cases borrowers plan to dispose of the property, in other cases they want to hang on if possible.

A Best Possible Outcome

In principle, there is a “best possible outcome” for every individual situation, but only rarely do borrowers give me all the information I would need to find it, even if I had the time. Few borrowers know what their options might be, and fewer still understand the information they must provide before a best option can be identified. But some useful resources are available.

I have an article on my Web site called “Mortgage Payment Problems: What If You Can’t Pay?” It covers a wide range of possible situations in which borrowers may find themselves, and suggests the remedies that appear most relevant to each situation.

Recently, PMI Mortgage Insurance Company and Genworth Mortgage Insurance Company have developed Web sites directed entirely to helping prevent needless foreclosures. They cover much of the same ground as I do, but they do it better by breaking the problems down into bite-size pieces. Further, they include a number of videos that many people will find easier to follow than written expositions.

Warning: These sites are not easy to find through the main sites of the two companies. For the PMI site, go here. For Genworth, go here. Click on the menu item “Education and Training”.  

These sites are for those who are prepared to invest the time needed to figure out what their options are; they will not hand-tailor a solution for them, but they will provide useful guidance nonetheless.

At a second site, Genworth takes a step toward providing hand-tailored solutions. They provide forms which, when filled out by borrowers, provide the raw materials from which hand-tailored solutions are derived. However, there is no automated assistant to generate solutions; instead the information is referred to a Genworth counselor who will do it manually. Unfortunately (but understandably), the counseling service is available only to borrowers whose lenders have mortgage insurance with Genworth.

That does not mean that this facility is useless for other borrowers in trouble. At some point, every borrower in trouble who expects help must pull together all the information about their financial situation that is relevant to a best possible outcome. If the intention is to go directly to the lender, providing this information at the outset will go a long way toward placing him at the top of the applicant pile rather than at the bottom.

I have been searching for a program that will automate the last step — that is, after the borrower enters all relevant information, it will produce a best possible outcome, for that borrower. While such programs exist, they have been developed for license to major players and I have not yet been able to shake one free for direct use by borrowers. But stay tuned.

 
SEARCH FOR BANK OWNED HOMES AT www.CentralValleyHomes.com

Carol Perdew
Prudential California Realty
(209) 239-7979
www.CentralValleyHomes.com 

 

Help in Understanding the Foreclosure Process

Avoiding Foreclosure
Presented by Freddie Mac

The last thing any homeowner wants to think about is losing the family home. No one expects to lose their house to foreclosure, but by understanding the foreclosure process and what may lead up to it, you can be in a better position to recognize and address potential problems that may impact your ability to make every mortgage payment on time.

What is foreclosure?

In the contract you signed when your mortgage lender loaned you money to buy your house, you agreed that if you can’t repay the loan, the lender can foreclose to take ownership of the house.

If you do not pay your monthly mortgage payment, you are technically in default on your mortgage. State laws vary, but generally, a loan that is as little as 90 days delinquent can be considered in foreclosure.

Your lender may send you a notice indicating that they are starting foreclosure proceedings, but don’t wait; take steps to prevent a foreclosure as soon as you realize you are having trouble paying the mortgage!

• Learn to recognize the warning signs of foreclosure.
• Know what early steps you can take to avoid foreclosure.
• If you are in the midst of a foreclosure, know the dos and don’ts.
• Know where to get help in dealing with issues that could lead to foreclosure.

Have a Plan B.

Don’t wait until you’re in a financial predicament before assessing your options. The time to develop a backup plan is not when things have gotten so bad that you are facing foreclosure, but when things are going well and you can prepare for the unexpected “what if’s” that happen in life.

Quick Knowledge Check

Take our Avoiding Foreclosure Knowledge Check to find out how much you know about protecting your home and avoiding foreclosure.

What to do in special circumstances…

If you are a victim of a natural disaster.
If your property has been damaged or destroyed by a tropical storm, hurricane, tornado, flood, or other disaster, talk to your lender immediately. They often have special disaster relief options to help you.

Check our Protection section for more information on help after a natural disaster.

If you are a service member on or recently released from active duty.
There are special financial relief options in place for service members through the Service Members Civil Relief Act (SCRA). Talk to your lender about them.

If you are a veteran.
The Department of Veterans Affairs has produced a streaming video to provide information to
vets facing foreclosure.

To View Foreclosed Homes got to www.CentralValleyHomes.com

Carol Perdew
(209) 239-7979
www.CentralValleyHomes.com

HOMEBUYING TIP – ESTABLISH YOUR CREDIT

F r e d d i e  M a c ’ s  G u I d e  t o  t h e  H o m e  B u y i n g  P r o c e s s
Establishing Your Credit

Don’t have credit, or would like to improve your credit? Building good credit doesn’t have to be difficult, but it does require time and patience. Follow these tips and you’re on your way:

·         Pay your bills on time.
Credit scores emphasize your most recent payment record. Paying on time raises your credit score. If you’ve been late, start paying on time!

·         Pay at least the minimum amount required.
You can always pay more – and it’s a good idea if you can afford to. But you should never pay less than the minimum.

·         Keep your credit card balances low.
Don’t “max out” your credit cards – that can lower your credit score.

·         Don’t apply for too many loans or new accounts.
Applying for a lot of credit in a short period of time may concern lenders that you won’t manage your debt well. Only apply for credit when you need it.

·         Keep your debt-to-income ratio at 20%.
Generally, you should not have debt that’s more than 20% of your net monthly income.

·         Establish credit if you don’t have any.
Open a free or low-cost checking or savings account and make regular deposits. Only write checks when you have money to pay for things. And apply for one or two credit cards, use them carefully, and pay them off each month.

Resources

Do you need help getting your credit in order? Find a credit counselor.

Do you know your credit rights? Look at the FTC’s information on credit and consumer rights.

Are you credit card savvy? Visit PBS’s Frontline Web site for the Eight Things A Credit Card User Should Know.

What if I have nontraditional credit? If you have nontraditional credit (no bank account or credit cards), your lender will work with you to use payment information such as rent and utilities to determine your creditworthiness.

But remember, a bank account is always a good idea and it’s never too late to begin to establish a traditional credit history.

Thanks,
Carol Perdew
(209) 239-7979
wwwCarolPerdew.com

Mortgage Defaults Up 125%

California Mortgage Defaults up 125%

DataQuick: Activity may be ‘nearing a plateau’

By Inman News,

Lenders started foreclosure proceedings on a record number of California homeowners in the second quarter, the result of declining home values and the rampant spoilage of a batch of especially risky home loans made in late 2005 and 2006, a real estate information service reported.

Mortgage servicers recorded 121,341 “notices of default” during the April-through-June period. That was up 6.6 percent from a revised 113,809 for this year’s first quarter, and up 124.9 percent from 53,943 in second-quarter 2007, according to DataQuick Information Systems.

Last quarter’s number of defaults was the highest in DataQuick’s statistics, which go back to 1992. Notices of Default are recorded at county recorders offices and mark the first step of the formal foreclosure process.

“It’s still very clear that most of the problems are in certain areas and in certain categories. Basically, areas that absorbed spillover activity during the end of the boom cycle in 2006 seem to be the hardest hit. Prices went too high, fueled by the availability of easy-to-get, dicey home loans. An added element was speculative buying,” said John Walsh, DataQuick president.

“The small increase in defaults from the first to the second quarter may indicate that we’re nearing a plateau. We won’t know until the end of the year, but it may be that some lenders are starting to prioritize workouts with homeowners instead of grinding things through the foreclosure process. Of course, they may just be swamped and can’t handle processing any more paperwork,” he said.

Most of the loans that went into default last quarter were originated between September 2005 and November 2006. The median age was 26 months, up from 16 months a year earlier.

On primary mortgages, California homeowners were a median five months behind on their payments when the lender filed the notice of default. The borrowers owed a median $11,583 on a median $346,400 mortgage.

On home equity loans and lines of credit, homeowners were a median eight months behind on their payments. Borrowers owed a median $3,492 on a median $60,000 credit line. However the amount of the credit line that was actually in use cannot be determined from public records.

Although 121,341 default notices were filed last quarter, they involved 118,020 homes because some borrowers were in default on multiple loans (e.g. a primary mortgage and a line of credit).

Last quarter’s default numbers were a record in almost all of the state’s 58 counties. That included Los Angeles County, where last quarter’s 21,632 residential defaults surpassed the prior record of 21,444 recorded during first-quarter 1996.

On a loan-by-loan basis, mortgages were least likely to go into default in San Francisco, Marin, and San Mateo counties — an historical norm. The likelihood was highest in Merced, San Joaquin and Stanislaus counties.

Of the homeowners in default, an estimated 22 percent emerge from the foreclosure process by bringing their payments current, refinancing, or selling the home and paying off what they owe. A year ago it was about 52 percent. The increased portion of homes lost to foreclosure reflects the slow real estate market, as well as the number of homes bought during the height of the market with multiple-loan financing, which makes ‘work-outs’ difficult.

Multiple-loan financing peaked in Q4 of 2006 at 60.9 percent of all financed home purchases. Last quarter it was 11.5 percent.

Trustees Deeds recorded, or the actual loss of a home to foreclosure, totaled 63,061 during the second quarter. That’s the highest since DataQuick began tracking Trustees Deeds in 1988. Last quarter’s total rose 33.5 percent from 47,221 in the previous quarter, and jumped 261 percent from 17,458 in second-quarter 2007. In the last real estate cycle, Trustees Deeds peaked at 15,418 in third-quarter 1996. The all-time low was 637 in the second quarter of 2005.

There are 8.4 million houses and condos in the state, DataQuick reported.

Foreclosure resales have emerged as a significant market factor, accounting for 40 percent of all California resale activity last quarter. A year ago it was 5.4 percent. Foreclosure resales vary significantly by area, from 3 percent in San Francisco County to 75.1 percent in Merced County.

CHECK OUT BANK OWNED HOMES AT www.CentralValleyHomes.com

 

                 
Thanks,
CAROL PERDEW
(209) 239-7979
Carol@PerdewHomes.com

FORECLOSURE RELIEF BILL HELPS HOME BUYERS

The House passed a new state program designed to help first-time buyers purchase foreclosed home in Stanislaus, San Joaquin and Merced counties.  First-time home buyers would get a $7,500 refundable tax credit under the bill.  Those who support this program say this could help more people buy the valley’s foreclosed homes.

 

Foreclosure Relief Bill Might Bring Help to San Joaquin Valley

$4B program expected to win Senate approval

By MICHAEL DOYLE
BEE WASHINGTON BUREAU

Related Stories

WASHINGTON — The House on Wednesday approved a controversial housing bill that supporters say could offer some relief for the San Joaquin Valley’s foreclosure crisis.

California and valley agencies, for instance, could purchase some of the region’s myriad foreclosed and abandoned homes with the help of a new $4 billion grant program.

“This is just a stopgap,” said Rep. Dennis Cardoza, D-Merced, “but it’s the best we can do today.”

Cardoza joined other lawmakers in contributing provisions to the forbiddingly technical, 694-page bill that has bounced around Capitol Hill for about a year. President Bush this week dropped his earlier veto threats, giving a green light for final approval.

The bill was approved 272-152. The Senate is expected to pass the bill Friday or Saturday.

The new federal program follows an announcement Monday by Gov. Schwarzenegger that a state program has been established to boost the valley’s economy by helping first-time buyers purchase foreclosed houses in Stanislaus, San Joaquin and Merced counties at discount prices and with reduced-rate loans.

That state initiative, called the Community Stabilization Home Loan Program, is expected to help 800 to 1,000 families purchase vacant bank-owned properties. Nearly 100 homes in the Northern San Joaquin Valley are eligible, and more are expected to be added each week.

Schwarzenegger said the $200 million program will “pump up” the region’s economy by boosting real estate sales and reducing the number of foreclosures on the market, which has been reeling from escalating foreclosures and declining values.

A big part of the federal bill props up Fannie Mae and Freddie Mac, the giant government-sponsored mortgage finance companies that together own or guarantee half of the nation’s mortgage debt.

The $4 billion grant program would enable state and local housing agencies to “purchase and redevelop” abandoned and foreclosed homes within 18 months. The government agencies could buy the properties at a discount and then choose to sell, rent or demolish the homes.

Lawmakers declare that the grants should target “areas hit hardest by foreclosures.” This will be determined by a formula that includes the number of foreclosures, the extent of subprime lending and other factors set by the Department of Housing and Urban Development.

The word “California” does not appear anywhere in the Housing and Economic Recovery Act of 2008. Nonetheless, the state in general and the San Joaquin Valley in particular could get a fair-sized chunk of the money.

More than 17,000 Northern San Joaquin Valley homes have been lost to foreclosure during the past year, according to data released Tuesday.

The number of homes repossessed by lenders continues to skyrocket in Stanislaus, San Joaquin and Merced counties, according to DataQuick Information Systems.

This April, May and June, for instance, 2,207 homes were foreclosed on in Stanislaus, pushing the county’s one-year total to 5,554. California lost 63,031 homes to foreclosure this spring and 166,087 during the past year.

San Joaquin and Merced counties have the highest foreclosure rates in the United States. In San Joaquin, 3,185 homeowners lost their property to foreclosure this spring, pushing its one-year total to 8,366. In Merced, 1,223 homes were foreclosed this spring, pushing its one-year total to 3,174.

The foreclosure problems in the valley aren’t likely to end soon, because a record number of “notices of default” were filed in almost all of California counties this spring, including Stanislaus, San Joaquin and Merced. Notices of default are the first step in the foreclosure process.

“We want to keep as many people in their houses as we can,” said Democratic Rep. Jerry McNerney of Pleasanton, whose district includes part of San Joaquin County. “This is a bill that really does help people.”

McNerney wrote a provision that boosts loan limits for veterans.

Cardoza, McNerney and Rep. Dan Lungren, R-Gold River, voted for the bill. Rep. George Radanovich, R-Mariposa, voted no.

First-time buyers would get a $7,500 refundable tax credit under the bill. Proponents say this could help more people buy the valley’s foreclosed houses.

The bill provides $180 million for financial counseling and legal assistance to help current homeowners. The bill targets some of this money for the 100 U.S. metropolitan areas with the “highest home foreclosure rates,” which will guarantee funding for the valley.

To search for Central Valley homes go to www.CentralValleyHome.com

Foreclosure Warning Signs

FREDDIE MAC’S GUIDE
What are the Warning Signs of Foreclosure?

Unexpected life changes are often a contributing factor to foreclosure – especially those that impact your finances, such as:

• Loss of employment or reduction of hours
• Major illness or injury
• Divorce or separation
• Death of a spouse

What makes it so difficult to think about foreclosure during times of crisis is that you are so focused on the problem at hand and not likely to have the time or energy to think about how it could impact other aspects of your life. That is why a plan that was developed before any problem starts is the best protection.

If you have a “Plan B” in place, you won’t have to organize your finances while you are stressed about finding a job or dealing with a major illness. The plan will already be done – you will need to just follow it.

Financial Warning Signs

There may not be a major life change to signal potential trouble – you simply may be having a difficult time properly managing your finances. Don’t be fooled into thinking your credit card problems won’t affect your mortgage. It is important to realize that financial difficulties in one area can, and often do, spill over to other areas. These difficulties are all warning signs of financial problems that can lead to foreclosure on your home if you do not act quickly. They include:

• Maxing out credit cards
• Using credit to pay for day-to-day expenses, such as groceries, utilities, etc.
• Being unable to pay your bills on time
• Paying only the minimum amount on credit cards
• Applying for new credit cards after maxing out on existing ones
• Having to choose which bills to pay

Talk to a housing counselor immediately if you see these signs (see sidebar for help finding a legitimate counselor). You may be able to get your finances back on track before foreclosure becomes a reality.

View Homes for Homes for Sales at   www.PerdewHomes.com

FORECLOSURE PREVENTION FORUM

Educating Those Caught in Foreclosure
Forum Equips Struggling Homeowners with Information

Vince Rembulat
Reporter
Manteca Bulletin

Don’t yell. Be persistent. And work as hard to keep your home as you did to buy it.

That advice – coupled with the nuts and bolts of trying to avoid foreclosure – was provided at the No Homeowner Left Behind forum Wednesday at the Manteca Senior Center. The gathering was designed to educate and provide possible options to those in danger of losing their homes according to Ana Rocha of the City of Manteca Redevelopment Agency.

She organized the group of volunteer professionals in the field to possibly provide direction to the nearly 50 in attendance who are among 312 homeowners in Ripon, Manteca, and Lathrop currently in one of the early or more advanced stages of the foreclosure process. There are currently 221 homes that have already been foreclosed and taken back by the banks that are available for sale in the three cities as of Friday.

Included on the NHLB panel were Ed Parcuat, Karen Eckstein, Pete Kovacs, and Dori Beck, with Lucy Living, a HUD-certified counselor with ByDesign Financial Solutions in Stockton, as the special guest.

“A mortgage is a promissory note,” she said.

For those having trouble paying their mortgage, Living indicated that one solution might include making cuts to personal expenses.

“Analyze your situation,” she said. “Are you spending $150 a month on cable TV? Do you have a $200 phone bill? Maybe you own one too many cars?”

Her HUD-certified counseling services in the Northern San Joaquin Valley not only offers free advice about home buying but assists resolving mortgage problems.

“We’ll work one-on-one with you to find the best option. We might even contact your investor. But at the same time don’t expect miracles,” Living said.

As for working with the bank, those on the panel agreed that it’s important to be persistent but, at the same time, be cordial.

“Don’t yell (on the phone) at those people,” Living said. “They might not want to work with you.”

And rather than talking to customer service or collections, they suggested contacting loss mitigation.

NHLB was started up in Fresno, with Stanislaus County forming a Central Valley branch not too long ago.

“We’re a round table of certified professionals (Realtors, counselors, lenders, planners, etc.), volunteering our time to meet on a monthly basis. We’ve pooled our resources to efficiently educate people,” said Rocha, who worked in Stanislaus County for eight years prior to coming to Manteca three months ago.

“We’re here for options,” added Parcuat, a mortgage planner. “Everyone has different reasons for being here tonight.

“There may even be those who can’t afford to keep their home and just want to move on.”

In addition, they touched on the foreclosure process, defaulting on a loan, and options.

Included were reinstatement of a delinquent loan, refinancing loan, litigation and bankruptcy.

“Bankruptcy has to be your very last option,” Parcuat said.

Many on the panel are optimistic that housing market will someday improve based on the trends of the 1980s and 1990s.

“What’s happening (today) is unprecedented,” Kovacs said. “We’ll eventually get out it.

“Those who held on to their home will benefit the most.”

As for those in danger of losing their home, Parcuat strongly recommended spending at least one hour a day talking to the bank.

“You worked hard to get your house,” he said. “Do you think you should work hard to keep it?”

Several forums are planned – or main events, according to Rocha – including one at the San Joaquin County Fairgrounds in Stockton on Friday, July 25, from 3 to 9 p.m., and Patterson’s Apricot Valley Elementary School, 1320 Hensley Parkway, from 8 a.m. to 3 p.m.

The NHLB event in Patterson will include representatives from Countrywide, Wells Fargo, Washington Mutual, and Citibank.

Another Manteca forum is planned for the coming months, Rocha said.

For more information, call 239-8427.

For Real Estate Information go to www.CentralValleyHomes.com

New Bill Creates a Tax Credit for First-time Homebuyers

Senate Sends Sweeping Housing Bill to House

Legislation addresses FHA expansion; Fannie, Freddie oversight

By Matt Carter
Inman News 

 

Senate lawmakers Friday signed off on a bill that would modernize the Federal Housing Administration and expand FHA loan guarantee programs by $300 billion, create a new regulator for Fannie Mae and Freddie Mac, and create an $8,000 tax credit for first-time home buyers.

HR 3221, the Foreclosure Prevention Act of 2008, would also appropriate $4 billion for states to purchase and renovate abandoned and foreclosed properties, a proposal the Bush administration has threatened to veto.

The bill also envisions a national licensing system for residential loan originators and would establish minimum qualifications for all loan originators and require federal regulators to create a registry for banks and thrift employees who originate loans.

The bill is headed back to the House of Representatives, with a plea from Sen. Chris Dodd, D-Conn., not to change the bill without consulting with him and Senate Banking Committee co-chair Richard Shelby, R-Ala.

Before a 63-5 vote to reject two amendments to the bill and send it to the House, Dodd conceded that “it will not solve every problem,” but said it addresses criticism that Congress has failed to act quickly to address the housing downturn.

The Bush administration has long sought an independent regulator for Fannie Mae and Freddie Mac, and legislation to modernize practices at FHA. But differences between Republicans and Democrats have scuttled multiple bills on both issues.

By tying several major housing issues into a single bill, Dodd and Shelby hoped to build bipartisan support for the legislation. But differences between the Senate bill and legislation previously adopted in the House must still be ironed out.

While the House wants to continue the temporary limit of $729,750 for loans purchased or guaranteed by Fannie Mae and Freddie Mac, the Senate bill would set a cap of $625,000 for Fannie, Freddie and FHA loan guarantee programs.

The Senate bill envisions covering the nearly $1 billion in expected costs associated with a $300 billion expansion of FHA loan guarantee programs by assessing new fees on loans guaranteed by Fannie and Freddie, a proposal some House lawmakers have been critical of.

But with financial markets roiled by speculation that the government may be forced to bail the giant mortgage companies out, there’s a renewed sense of urgency surrounding the bill’s passage.

“I hope the House and Senate can work quickly with each other to get a bill to the president before Congress adjourns for its August recess,” Mortgage Bankers Association Chairman Kieran Quinn said in a statement. “It is unfortunate that it took a crisis of this magnitude to bring us to the point where we can reach broad agreement on these issues, but have no doubt, a more nimble and modern FHA along with stronger … oversight (of Fannie Mae and Freddie Mac) are crucial to addressing the issues that are currently affecting the mortgage and housing markets.”

Search for Homes at www.CentralValleyHomes.com