Real estate Newsletter

No More ‘Drive-By’ Appraisals—On Some Loans

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For information about distinguished Southern California luxury real estate in Los Angeles County, as well as coastal Orange County homes and San Diego homes, call Bob Cumming of Keystone Group Properties at 310-496-8122.

No More ‘Drive-By’ Appraisals – On Some Loans

During the housing market’s go-go years, the practice of “drive-by” appraisals, in which property appraisers didn’t physically inspect the interior of a home, was commonplace.

It’s since become far less so, as mortgage lenders remain extremely cautious about the loans they are making. They want to make sure that they have an independent estimate of the market value of a home, so it stands to reason that an appraiser should actually take a look at the home’s interior. Most of the complaints about the appraisal industry these days are of a different nature – that appraisers are too conservative about how they value homes.

Rules proposed by federal regulators on Wednesday would ban the practice of “drive-by” appraisals and require a physical inspection of the home. But the rules, required by the Dodd-Frank financial overhaul of 2010, would only apply to a small slice of the mortgage market – loans defined by regulators as “higher risk.”

Regulators define high risk ones in which the rate is at least 1.5 percentage points above a market average.

However, lenders don’t make many loans above this threshold: In 2010, the most recent year for which data are available, such high-risk loans made up only 3.2% of the overall lending market, according to the Federal Reserve.

The regulators, including the Fed and Consumer Financial Protection Bureau, also said they aim to combat fraudulent property flipping schemes in which a developer buys a property, makes minimal repairs and tries to sell it at an inflated price. In an effort to combat this property flipping, the regulators propose to require lenders making higher-rate mortgages to obtain an additional appraisal at no cost to the borrower.

An appraisal exists to protect a lender; it is different from a home inspection done on the borrower’s behalf to see if there are any needed repairs before closing.

Separately, the consumer bureau proposed that lenders should be required to provide consumers a free copy of their appraisal no later than three days before the property sale closes.

That proposal, another Dodd-Frank requirement, has become standard practice around the appraisal industry in recent years, said Bill Garber, director of government and external relations for the Appraisal Institute, an industry trade group. Until around 2008, lenders didn’t provide a copy of an appraisal to borrowers unless they received a written request, but new standards for the industry changed that practice.                        Alan Zibel

Select Orange County Homes for Sale

Are Investors Taking Over your Neighborhood?

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For information about Southern California luxury homes in Los Angeles County, Orange County, and San Diego, call Bob Cumming of Keystone Group Properties at 310-496-8122. Keystone Group Properties serves discriminating buyers and sellers of California luxury and coastal real estate in Newport Beach, Manhattan Beach, Hermosa Beach, Dove Canyon, Ladera Ranch, Marina del Rey, San Juan Capistrano, Palos Verdes, Pacific Palisades, Mission Viejo, Rancho Margarita, San Clemente, Redondo Beach, Santa Monica, Venice, Malibu, Irvine, Bel Air, Beverly Hills, and Beverly Glen.

Are Investors Taking Over your Neighborhood?

They’ve got the cash and the manpower working in their favor. They’re buying up parts of your neighborhood in hopes of turning quick profits, and in their own words, moving a once-stagnant market forward. For first-time homebuyers, they’re seen as potential hurdles.

The presence of real estate investors in San Diego County has mushroomed. A total of 1,030 properties were sold in June to absentee buyers, mainly investors and buyers of second homes, DataQuick numbers show. That’s the highest level of absentee-buyer activity since 1,089 in June 2005 — when countywide home prices neared a dizzying peak of $517,500 and amateurs placed risky bets in the real estate game. Their share now of the total housing market in the county has skyrocketed, too. Absentee sales made up 30 percent of all homes sold in February, a peak, and has been in the 28 percent region ever since.

An absentee buyer is someone who indicates at the time of sale that their property tax bill be sent to a different address, based on DataQuick’s definition.
So are we back in 2005, a time of fast-and-loose borrowing and rocket-fast price appreciation? Not at all. In today’s market, mortgage underwriting remains tight and prices are steadily climbing. Also, investors now are savvier, eyeing smaller profits and have found strength in numbers. Instead of going at it alone and buying one-offs, they’re working with others and rehabbing several properties at a time.

“Unlike the dumb money of the 2003-2005 period, I would characterize the buyers of 2008-2012 as pretty sophisticated, often with full-time acquisition staff and more likely to do a lot more research before buying,” said Norm Miller, real estate professor at University of San Diego.

Another major difference in the current market is inventory levels. Right now, fewer than 6,000 homes are listed for sale in San Diego County, 55 percent lower than what was available about two years ago, the latest numbers from the San Diego Association of Realtors show.

Fewer homes on the market means more competition for anyone who wants to buy, from the investor looking for his next project to a couple looking for a starter home. It also means higher chances of multiple bids, sometimes upbids, which can dash first-timer hopes of buying in the under-$300,000 pricing area.

“There’s almost no inventory,” said Stan Gendlin, acquisitions manager with CT Homes, a local real home-flipping company. “Investors are looking for anything they can get. Everyone is bidding each other up.”

What kinds of tactics are investors adopting?

Curtis Gabhart has been a full-time real estate investor for 12 years. Like many in his field, he goes where there are opportunities.

Before the real estate bust, Gabhart’s focus was apartment buildings. Post-bust, it’s been single-family homes.

Problem is, he and others like him have already gobbled up most of the under-$300,000 inventory, which also is popular among first-time homebuyers. Homes in that price range have been popular since they cost less to acquire, and if they require little work, could yield higher, faster profits.

San Clemente CA homes for sale

81 Percent of Refinancing Homeowners Maintain/Reduce Mortgage in Q2

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For interest in Southern California luxury real estate in Los Angeles County, coastal Orange County homes and San Diego homes, call Bob Cumming of Keystone Group Properties at 310-496-8122. Keystone Group Properties serves discriminating buyers and sellers of La Jolla California real estate and properties in Newport Beach, Dana Point, Laguna Beach, Palos Verdes, Mission Viejo, Redondo Beach, Santa Monica, Malibu, Beverly Hills, Bel Air, and Beverly Glen.

81 Percent of Refinancing Homeowners Maintain or Reduce Mortgage Debt in Second Quarter

Inflation-Adjusted Cash-Out Volume at 17-Year Low

MCLEAN, Va., Aug. 1, 2012 /PRNewswire/ — Freddie Mac (OTC: FMCC) released the results of its second quarter refinance analysis showing homeowners who refinance continue to strengthen their fiscal house.

News Facts

In the second quarter of 2012, 81 percent of homeowners who refinanced their first-lien home mortgage either maintained about the same loan amount or lowered their principal balance by paying-in additional money at the closing table. Of these borrowers, 59 percent maintained about the same loan amount, and 23 percent of refinancing homeowners reduced their principal balance; the share of borrowers that kept about the same loan amount was the highest in the 27-year history of the analysis.
The net dollars of home equity converted to cash as part of a refinance, adjusted for consumer-price inflation, was at the lowest level in 17 years (since the second quarter of 1995). In the second quarter, an estimated $5 billion in net home equity was cashed out during the refinance of conventional prime-credit home mortgages, substantially less than during the peak cash-out refinance volume of $84 billion during the second quarter of 2006.
The median interest rate reduction for a 30-year fixed-rate mortgage was about 1.5 percentage points, or a savings of about 28 percent in interest rate, the largest percent reduction recorded in the 27 years of analysis.
Among the refinanced loans in Freddie Mac’s analysis, the median depreciation of the collateral property was 16 percent over the median prior-loan life of 5.1 years. The prior-loan age was the oldest in 13 years, surpassed only by the prior-loan age recorded in the third quarter of 1999.
Property-value change and loan age varied between Home Affordable Refinance Program (HARP) and other refinance loans. For loans refinanced during the second quarter through HARP, the median depreciation in property value was 34 percent and the prior loan had a median age of about 5.5 years (to be eligible for HARP, the prior loan had to be originated before June 1, 2009). Excluding HARP loans, other loans refinanced during the second quarter had a median property-value decline of 2 percent over a median prior-loan age of about 4 years.
Quotes
Attributed to Frank Nothaft, Freddie Mac vice president and chief economist:
“The typical borrower who refinanced reduced their interest rate by about 1.5 percentage points. On a $200,000 loan, that translates into saving about $2,900 in interest during the next 12 months. Fixed-rate mortgage rates hit new lows during June, with 30-year product averaging 3.68 percent and 15-year averaging 2.95 percent that month, according to our Primary Mortgage Market Survey®.
“The enhancements to HARP announced in October, such as removing the maximum loan-to-value limit, resulted in additional refinance volume during the second quarter. HARP loans were about one-third of Freddie Mac’s refinance fundings during the second quarter, the highest share since HARP’s inception.”
Get the latest information from Freddie Mac’s Office of the Chief Economist on Twitter:@FreddieMac
Cash-out Refinance Analyses Information
These estimates come from a sample of properties on which Freddie Mac has funded two successive conventional, first-mortgage loans, and the latest loan is for refinance rather than for purchase. The analysis does not track the use of funds made available from these refinances. The analysis also does not track loans paid off in entirety, with no new loan placed.

Mission Viejo homes for sale

Consumer Confidence Index Increases after Consecutive Declines

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Keystone Group Properties services discriminating buyers and sellers of Southern California luxury homes  real estate.  Call Bob Cumming of Keystone Group Properties at 310-496-8122 for the latest information about coastal Los Angeles real estate and waterfront real estate in San Diego.

The Conference Board Consumer Confidence Index Increases after Four Consecutive Declines

31 July, 2012. The Conference Board Consumer Confidence Index®, which had declined in June, improved slightly in July. The Index now stands at 65.9 (1985=100), up from 62.7 in June. The Expectations Index improved to 79.1 from 73.4. The Present Situation Index, however, decreased slightly to 46.2 from 46.6 a month ago.

The monthly Consumer Confidence Survey®, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary results was July 19.

Says Lynn Franco, Director of Economic Indicators at The Conference Board: “Despite this month’s improvement in confidence, the overall Index remains at historically low levels. Consumers’ attitude regarding current conditions was little changed in July, but their short-term expectations, which had declined last month, bounced back. However, while consumers expressed greater optimism about short-term business and employment prospects, they have grown more pessimistic about their earnings. Given the current economic environment — in particular the weak labor market — consumer confidence is not likely to gain any significant momentum in the coming months.”

Consumers’ appraisal of current conditions eased in July. Those claiming business conditions are “good” declined to 13.8 percent from 14.2 percent, while those saying business conditions are “bad” decreased to 34.2 percent from 35.9 percent. Consumers’ assessment of the labor market was also mixed. Those stating jobs are “hard to get” declined to 40.8 percent from 41.2 percent, while those claiming jobs are “plentiful” decreased to 7.8 percent from 8.3 percent.

On the other hand, consumers were generally more optimistic about the short-term outlook in July. The percentage of consumers expecting business conditions to improve over the next six months rose to 18.9 percent from 16.0 percent, while those anticipating business conditions will worsen decreased to 14.6 percent from 15.8 percent. Consumers’ outlook for the labor market was also more upbeat in July. Those expecting more jobs in the months ahead increased to 17.6 percent from 14.8 percent, while those anticipating fewer jobs edged down to 20.3 percent from 20.8 percent. The proportion of consumers expecting an increase in their incomes, however, declined to 14.2 percent from 15.3 percent.

The next release is scheduled for Tuesday, August 28, 2012

Beverly Hills CA Real Estate for Sale

 

90 Percent of Foreclosures are Wrongful

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Call Bob Cumming of Keystone Group Properties at 310-496-8122 for information about Southern California luxury homes in Los Angeles County, exclusive Orange County CA homes and beach/coastal homes in San Diego County. Serving buyers and sellers of Southern California coastal real estate as well as Beverly Hills, Beverly Glen, and Bel Air, Keystone Group Properties offers excellent services and professional expertise to discriminating clients in Southern California.

90 Percent of Foreclosures are Wrongful!

A wrongful foreclosure action typically occurs when the lender starts a non-judicial foreclosure action when it simply has no legal cause. This is even more evident now since California passed the Foreclosure prevention act of 2008 SB 1194 codified in Civil Code 2923.5 and 2923.6. In 2009 it is the opinion of some attorneys in California that 90% of all foreclosures are wrongful in that the lender does not Compliance would cost hundreds of millions in staff, paperwork, and workouts that they don’t deem to be in their best interest. The workout is not in their best interest because our tax dollars are guaranteeing the Banks that are Too Big to Fail’s debt. If they don’t foreclose and if they work it out the loss is on them.

There is no incentive to modify loan for the benefit of the consumer.

The banks are therefore incentivized to foreclosure without the mandated contacts with the borrower. But compliance with 2923.5 is not done. The Borrower is never told that he or she have the right to a meeting within 14 days of the contact. They do not get offers to avoid foreclosure. There are typically two short sale offers or a probationary mod that will be declined upon the 90th day.

Wrongful foreclosure actions are also brought when the service providers accept partial payments after initiation of the wrongful foreclosure process, and then continue on with the foreclosure process. These predatory lending strategies, as well as other forms of misleading homeowners, are illegal.
The borrower is the one that files a wrongful disclosure action with the court against the service provider, the holder of the note and if it is a non-judicial foreclosure, against the trustee complaining that there was an illegal, fraudulent or willfully oppressive sale of property under a power of sale contained in a mortgage or deed or court judicial proceeding. The borrower can also allege emotional distress and ask for punitive damages in a wrongful foreclosure action.

Causes of Action

Wrongful foreclosure actions may allege that the amount stated in the notice of default as due and owing is incorrect because of the following reasons:

  • Incorrect interest rate adjustment
  • Incorrect tax impound accounts
  • Misapplied payments
  • Forbearance agreement which was not adhered to by the servicer
  • Unnecessary forced place insurance,
  • Improper accounting for a confirmed chapter 11 or chapter 13 bankruptcy plan.
  • Breach of contract
  • Intentional infliction of emotional distress
  • Negligent infliction of emotional distress
  • Unfair Business Practices
  • Quiet title
  • Wrongful foreclosure
  • Tortuous violation of 2924 2923.5 and 2923.5 and 2932.5

Injunction

Any time prior to the foreclosure sale, a borrower can apply for an injunction with the intent of stopping the foreclosure sale until issues in the lawsuit are resolved. The wrongful foreclosure lawsuit can take anywhere from ten to twenty-four months. Generally, an injunction will only be issued by the court if the court determines that: (1) the borrower is entitled to the injunction; and (2) that if the injunction is not granted, the borrower will be subject to irreparable harm.

Damages Available to Borrower

Damages available to a borrower in a wrongful foreclosure action include: compensation for the detriment caused, which are measured by the value of the property, emotional distress and punitive damages if there is evidence that the servicer or trustee committed fraud, oppression or malice in its wrongful conduct. If the borrower’s allegations are true and correct and the borrower wins the lawsuit, the servicer will have to undue or cancel the foreclosure sale, and pay the borrower’s legal bills.

Why Do Wrongful Foreclosures Occur?

Wrongful foreclosure cases occur usually because of a miscommunication between the lender and the borrower. Most borrowers don’t know who the real lender is. Servicing has changed on average three times. This has occurred with the MERS Mortgage Electronic Registration Systems and the “investor lender” hundreds of times since the origination. The servicers of record now have to contact the borrower. They don’t even know who the lender truly is. The laws that are now in place never contemplated the virtualization of the lending market. The present laws are inadequate to the challenge.

This is even more evident now since California passed the Foreclosure prevention act of 2008 SB 1194 codified in Civil Code 2923.5 and 2923.6. It is the opinion of some legal experts that 90% of all foreclosures are wrongful in that the lender does not comply. The lenders have taken a calculated risk.To comply would cost hundreds of millions in staff, paperwork, and workouts that they don’t deem to be in their best interest.

The workout is not in their best interest because our tax dollars are guaranteeing the Banks that are Too Big to Fail’s debt. If they don’t foreclose and if they work it out the loss is on them. There is no incentive to modify loan for the benefit of the consumer. This could be as a result of an incorrectly applied payment, an error in interest charges and completely inaccurate information communicated between the lender and borrower.

Some borrowers make the situation worse by ignoring their monthly statements and not promptly responding in writing to the lender’s communications. Many borrowers just assume that the lender will correct any inaccuracies or errors. Any one of these actions can quickly turn into a foreclosure action. Once an action is instituted, then the borrower will have to prove that it is wrongful or unwarranted. This is done by the borrower filing a wrongful foreclosure action. Costs are expensive and the action can take time to litigate.

Impact

The wrongful foreclosure will appear on the borrower’s credit report as a foreclosure, thereby ruining the borrower’s credit rating. Inaccurate delinquencies may also accompany the foreclosure on the credit report. After the foreclosure is found to be wrongful, the borrower must then petition to get the delinquencies and foreclosure off the credit report. This can take a long time and is emotionally distressing.

Wrongful foreclosure may also lead to the borrower losing their home and other assets if the borrower does not act quickly. This can have a devastating effect on a family that has been displaced out of their home.

The borrower may be entitled to compensation for their attorney fees, court costs, pain, suffering and emotional distress caused by the action once the borrower’s wrongful foreclosure action is successful in court.

To summarize, it is suggested the homeowner work with real estate attorneys who can help in a professional manner and are more apt to be successful in helping the homeowner.

Bel Air CA real estate for sale

Home Prices Continue to Rise in May 2012

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For interest in So California luxury real estate in Los Angeles County, as well as coastal Orange County homes and San Diego homes, call Bob Cumming of Keystone Group Properties at 310-496-8122. Keystone Group Properties serves the discerning buyer and sellers of high-end CA real estate, including La Jolla real estate and properties from Newport Beach, Dana Point and Laguna Beach to Palos Verdes and Palos Verdes Estates, Mission Viejo, Redondo Beach, Santa Monica, and Malibu. We also present exclusive Los Angeles CA homes in Beverly Hills, Bel Air, and Beverly Glen real estate.

Home Prices Continue to Rise in May 2012

According to the S&P/Case-Shiller Home Price Indices

New York, July 31, 2012 – Data through May 2012, released today by S&P Dow Jones Indices for its S&P/Case-Shiller1   Home  Price  Indices,  the leading  measure  of U.S. home prices,  showed  that  average home prices increased by 2.2% in May over April for both the 10- and 20-City Composites.

With May’s data, we found that home prices fell annually by 1.0% for the 10-City Composite and by 0.7% for the 20-City Composite versus May 2011. Both Composites and 17 of the 20 MSAs saw increases in annual returns in May compared to April. Boston, Charlotte and Detroit were the three cities that saw their annual returns worsen in May, with annual rates of -0.1%, +0.9% and +0.6%, respectively. Atlanta continues to be the only city posting a double-digit negative annual return with -14.5%. However, this is an improvement over the -17.0% annual decline recorded in April 2012.   All 20 cities and both Composites posted positive monthly returns. No cities posted new lows in May 2012.

“With May’s data, we saw a continuing trend of rising home prices for the spring,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “On a monthly basis, all 20 cities and both Composites posted positive returns and 17 of those cities saw those rates of change increase compared to what was observed for April. Seventeen of the 20 cities and both Composites also saw improved annual rates  of  return.  We  have  observed  two  consecutive   months  of  increasing  home  prices  and  overall improvements in monthly and annual returns; however, we need to remember that spring and early summer are seasonally strong buying months so this trend must continue throughout the summer and into the fall.

“The 10- and 20-City Composites were each up 2.2% for the month and recorded respective annual rates of decline of 1.0% and 0.7%, compared to May 2011. While still negative, these annual changes are the best we’ve since in at least 18 months.

“Taking a closer look at the cities, Phoenix again posted the best annual return. Average home prices in that region were up 11.5% versus May 2011.  It was one of the hardest hit cities in the collapse, and prices are still more than 50% below their June 2006 peak, but the past five months have been positive for that market. Miami and Tampa are two other Sunbelt cities that were hard-hit in the downturn,  but are now showing positive annual rates of change.  Boston, Charlotte and Detroit, on the other hand, saw their annual rates of return deteriorate compared to April, even though prices rose over the month of May.   Las Vegas posted both a positive monthly change in May and saw an improvement in its annual return; that said, the market is still more than 60% below it August 2006 peak.

“June data for existing home sales, new home sales, housing starts and mortgage default rates were a bit mixed, but all are better than their year-ago levels.  The housing market seems to be stabilizing, but we are definitely in a wait-and-see mode for the next few months.”
Measured from their June/July 2006  peaks  through  May  2012,  the  decline  for  both  Composites  is  approximately  33%.  The  10-City Composite  recently  reached  its  low  in  the  current  housing  cycle  in  March  2012  and  the  20-City  in February  2012; at that time both Composites  were down approximately  35% from their summer  2006 peaks.

In May 2012, we observed all 20 MSAs and both Composites posting positive monthly returns. Atlanta, again, was the only city to post a double-digit negative annual rate of return of 14.5%; however it saw improvements in both monthly and annual rates versus what was published for April. Phoenix posted the highest annual rate of growth amongst all 20 cities at +11.5%, an improvement over the +8.6% annual return recorded in April. Chicago fared the best in terms of monthly returns with a 4.5% increase in home prices as compared to April. Atlanta, Cleveland, Detroit and Las Vegas continue to have average home prices below their January 2000 levels.

The table below summarizes the results for May 2012. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months,  based on the receipt of additional  source data. More than 25 years of history for these data series is available, and can be accessed in full by going to www.homeprice.standardandpoors.com.

Since its launch in early 2006, the S&P/Case-ShillerHome Price Indices have published, and the markets have followed and reported on, the non-seasonally adjusted data set used in the headline indices. For analytical  purposes,  S&P  Dow  Jones  Indices  publishes  a seasonally  adjusted  data  set covered  in the headline indices, as well as for the 17 of 20 markets with tiered price indices and the five condo markets that are tracked.
About S&P Dow Jones Indices

S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies is the world’s largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial AverageSM, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of institutional and retail investors. More assets are invested in products based upon our indices than any other provider in the world. With over 830,000 indices covering a wide range of assets classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com.

It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, and their respective affiliates, parents, subsidiaries, directors, officers, shareholders, employees and agents (collectively “S&P Dow Jones Indices”) does not sponsor, endorse, sell, or promote any investment fund or other vehicle that is offered by third parties and that seeks to provide an investment return based on the returns of any S&P Dow Jones Indices index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices or its affiliates do not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.

La Jolla real estate for sale

FRESH START™ Frequently Asked Questions (FAQ’s)

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For information about Southern California luxury and coastal homes in Los Angeles County, Orange County and San Diego County, call Bob Cumming of Keystone Group Properties at 310-496-8122. Keystone Group Properties services buyers and sellers of exclusive Southern California real estate along the West Coast and in Beverly Hills. Ask us about fabulous So California homes in Newport Beach, Laguna Beach, Laguna Niguel, or Malibu beach homes and beautiful La Jolla CA real estate.

FRESH START™ Frequently Asked Questions (FAQ’s)

Q:  When does FRESH START™ begin negotiations with the homeowner’s lender?
A:  FRESH START™ will engage the lender in the effort to acquire the property within 30 days after they receive the package from the homeowner.

Q:  What type of home is FRESH START™ intended to help?
A:  FRESH START™ was created to assist homeowners with their primary residence and usually does not accept investment or commercial properties into the program.

Q:   What is the typical physical condition of FRESH START™ home?
A:  The home must be in Marketable condition and able to pass a standard home inspection as determined by an independent 3rd party appraiser.  These appraisals are subject to both investor and secondary market review; therefore it must be determined to be in “average or good” condition by the independent appraiser.  If an appraisal report comes in with questions, homeowner can ask for a second appraisal from a 3rd party appraiser.  (Homeowner will incur the cost of a secondary appraisal).

Q:  What type of customer is FRESH START™ intended to help?
A:  FRESH START™ is intended to help homeowners who are upside-­‐down on the value of the property. (The home is worth less than the principle value the homeowners still owes on the mortgage.)

Q:  Who are the lenders that FRESH START™ typically works with?
A:  FRESH START™ usually  works with  licensed  conventional  lenders FHA,  VA,  Fannie  Mae,  Freddie  Mac;  sub-prime, Negative Amortization and bank portfolio loans are acceptable for the FRESH START™ program.

Q:  Who are the lenders that FRESH START™ typically does not work with?
A:  Private lenders or hard moneylenders are not acceptable for FRESH START™.

Q:  How accurate should individuals be when submitting financial figures?
A:  It is imperative that all financial information given to FRESH START™ from the homeowners be complete and accurate.

Q:  What home values are desirable for FRESH START™?
A:  The current market value of the home should be at least 20% lower than the balance of the first mortgage on the home.  Originating first loan or mortgage must exceed $100,000 and must be below $729,750.00.

Q:  How is the current market value of the home determined?
A:  Recent sales of properties comparable to your home are analyzed to determine the initial current market value of your home. Your  real  estate  agent  may  have  provided  some  of  these  to  you  to  assist  in  this  process. The final determining factor will be the Independent 3rd Party Appraiser’s evaluation and value.

Q:  How far behind is the typical homeowner entering FRESH START™?
A:  Homeowners entering FRESH START™ must be at least 60 days late on their mortgage payment. Fresh Start and its employees/referral partners CANNOT and NEVER advise anyone to miss a mortgage payment for any reason.
FRESH START™ and its employees/referral partners CANNOT and NEVER advise anyone to miss a mortgage payment for any reason.  FRESH START™ is designed to help homeowners that have already fallen behind on their mortgage payments due to a financial hardship and cannot currently afford the mortgage payment on their home.

Q:  What type of income is desired to enter FRESH START™?
A:  The  homeowners  entering  FRESH  START™  can  any documentable  source  of  income  that  demonstrates they  are capable of  making  the  monthly FRESH  START™ payment. Our internal Underwriters will determine the validity and acceptability of all income documentation provided.

Q:  How is the FRESH START™ monthly payment calculated?
A:  FRESH START bases the payment on the net present value of the home. Your representative will help you to determine the “NEW “fresh start” payment and if you verified income is sufficient for the “Fresh Start” program.

Q:  What is the upfront fee for FRESH START™?
A:  No upfront fees are charged for FRESH START™. The  homeowner  is  responsible  to  pay  for  an  Independent  3rd party  appraisal  (Approximately  $450.00).  Homeowner will be notified by FRESH START Housing Program of independent appraisal service and timing of appraisal. The appraisal takes place after homeowner accepts terms and conditions of acceptance package from FRESH START Housing Program.

Q:  When will the details of FRESH START™ be disclosed?
A:  All details of FRESH START™ are provided up front and in advance of signing any documents; after receipt of the FRESH START™ Application, your package will be underwritten for admission to FRESH START™. Each homeowner can review the terms of the proposal and accept or decline at their discretion.

Q:  When should I discuss FRESH START™ with an attorney?
A:  We advise our potential clients to consult independent legal counsel for any questions they have about their personal circumstances in relation to FRESH START™.

Q:  How flexible are the terms of FRESH START™?
A:  The homeowner must be willing to cooperate with FRESH START™ and all terms of the agreements to insure that negotiation with the lender is handled correctly. It is important not to interfere with the negotiation process.

Q:  What happens upon acceptance into FRESH START™?
A:  The client will receive a copy of the appraisal report and the lease agreement with the Acceptance Package. The appraisal report will reflect the market value of the home based on comparable sales in the area. In addition you will receive an Acceptance Letter into the program; you must sign and return these forms as instructed.

Q:  When does a homeowner begin making monthly rental payments?
A:  Monthly payments for the actual Lease begin at Close of Escrow (COE) and are due on the 1st of the month; if the escrow closes after mid-month than the 1st lease payment is prorated and the following months lease payment is also due at the close of escrow, your SPA account should have enough to cover these amounts.
The client will make payments to the Special Purpose Account 15 days after acceptance into the program to prove  the ability to afford the home at current market value; this allows a payment history to be established which must be proven to the investor. Payments to your SPA are typically due the 1st of each month.

Q:  What are the funds in the Homeowners Savings Account used for?
A:  As stated the funds in the special purpose account are used for 3 purposes; 1st they prove to the investor that the customer will not have “payment shock” and they are willing and able to make the lease payments.  Next, keep in mind that lease payments are due at the time the lease starts which is to say the 1st lease payment is due immediately upon close of escrow.  Finally the funds in the SPA account equal 2 payments will be used as security deposit on lease.

Laguna Niguel CA homes for sale

WHO QUALIFIES FOR FRESH START™

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For information about San Diego homes in La Jolla and Mission Beach, luxury Los Angeles real estate, Orange County CA homes and California waterfront properties, call Bob Cumming of Keystone Group Properties at 310-496-8122. Keystone Group Properties services buyers and sellers of Southern California coastal luxury homes from Malibu and Santa Monica to Newport Beach real estate, and distinctive homes in Beverly Hills.

WHO QUALIFIES FOR FRESH START™

Keep in mind that in order to qualify for FRESH START™ there are some very important guidelines, which must be followed.  Below is a brief list of the primary underwriting guidelines.

  •  Homeowner must have verifiable income; all income will be verified to guidelines.  Temporary income such as Unemployment, Short Term Disability, etc. will not be allowed.
  • The homeowner’s income must have a Front End Debt Ratio of no greater than 40%.   This is the homeowner’s gross household income versus the new rental payment.
  • Primary Residences only, no rental or income producing properties allowed.  1-­‐4 unit properties are permitted; however the owner must reside in at least one of the units.
  • Property must be in Marketable Condition.  Marketable condition is defined, as there are no deferred maintenance issues such as leaking roofs, missing siding, etc. There are also no functional obsolesce of the subject property such a missing or non-working A/C Units, missing water heaters, sinks, tubs, toilets, countertops, etc…
  • The client-­‐homeowners property must be valued at least 20% less than what is owed on the 1st mortgage. In example someone who has a home valued at $100,000.00 must have a mortgage owing on the1stmortgage of at least $120,000.00.
  • The home must be 2 or more payments past due. Under no circumstance should anyone encourage a homeowner to skip or miss payments to their mortgage(s). If a homeowner is capable of making their mortgage payment(s) they should do so.
  • FRESH START™ does not provide services for stopping or delaying Foreclosures or Trustee sales;should the client be in such a position the client-­‐homeowners should seek the services of someone skilled and licensed in these areas.
  • Bankruptcies:Homeowner may not be in active bankruptcy of any type at application or during the lease period.

Information by FRESH START™ Housing Program – 4029 Westerly Place, Suite 201, Newport Beach, CA 92660

Newport Beach Real Estate for sale

Introducing the FRESH START Housing Program for California Real Estate

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Keystone Group Properties services discriminating buyers and sellers of Southern CA luxury homes—properties from Newport Beach real estate and Marina del Rey homes to real estate in Pacific Palisades, Venice, Malibu, Santa Monica, and Beverly Hills real estate.
For the latest information about Fresh Start Short Sale options for coastal Los Angeles real estate, Orange County homes for sale and beach real estate in San Diego, call Bob Cumming, Keystone Group Properties, at 310-496-8122.

Introducing the FRESH START Housing Program for California Real Estate

Struggling with your current mortgage payments? You may qualify for the FRESH START Housing program.

Using the US Treasury’s HAFA Short Sale your mortgage company may be willing to forgive a significant portion of your mortgage debt, then allow you to rent back your home while re-establishing ability to repurchase your home back at today’s market value.

So if you are behind on your mortgage, I’d like to share more with you about the FRESH START Housing Program.

  1. FRESH START homeowners receive the mortgage debt forgiveness they need.
  2. Assist homeowners so they can stay in their homes.
  3. Rescue homeowners from public foreclosure.

I am your local FRESH START Certified agent, please be aware that not all real estate agents are certified to offer the FRESH START housing program.  Currently, my team is FRESH STARTing hundreds of homeowners receive the debt forgiveness they need to stop a potential public foreclosure!

Now if you’re like me, you’re skeptical when someone claims to offer something that sounds too good to be true. These days, most people claiming to FRESH START cannot offer a real solution. Well I’m pleased to inform you that this is not the case with the FRESH START Housing Program.

We are currently able to FRESH START homeowners in California, Arizona and Nevada.

Homeowners must meet minimum requirements. To learn more, call for a confidential consultation right away.  Please be aware that there is no charge for your enrollment into the FRESH START Housing Program.

We cannot emphasize enough that time is of the essence.The longer you wait the less likely I can FRESH START you!
–Taken from information by Fresh Start:  A Non-Profit Housing Initiative

Newport Beach real estate for sale

Recovery Roadblock? Mortgage Burdens Keep Job Seekers from Moving

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Call Bob Cumming of Keystone Group Properties at 310-496-8122 for the latest information about coastal Los Angeles real estate, Orange County homes for sale and beach real estate in San Diego.  Keystone Group Properties services discriminating buyers and sellers of Southern CA luxury homes.

Recovery Roadblock? Mortgage Burdens Keep Job Seekers from Moving

In what could end up becoming a vicious cycle of economic hurt, struggling homeowners who aren’t relocating for new jobs may stymie employers’ long-range growth.

So says a report from outplacement consultancy Challenger, Gray & Christmas Inc., which finds that about 7.5% of job hunters who found new positions ended up moving to a new home for work in the latter half of 2011.

Since the end of 2009, the quarterly relocation rate has averaged around 7.9%. That’s half the pre-recession rate of 15.7% and lower than the 13.2% of candidates willing to uproot during the recession.

With masses of homeowners still bound to mortgages or trapped in underwater homes, those also applying for jobs are increasingly inclined to stay put rather than abandon their properties.

“Picking up stakes remains a last resort for the majority of job seekers, many of whom are unwilling to take a loss on the sale of a home for a position that may or may not last,” said John A. Challenger, chief executive of the consultancy, in a statement. “For now, many people are stuck.”

And with most employers declining to cover employees’ relocation costs, and even fewer chipping in to lessen the impact of selling an undervalued home, there’s even less incentive for job seekers to take a chance on a new locale.

The lack of mobility, Challenger claims, could be “one of the biggest obstacles to economic recovery.”

“Eventually, as the economy continues to improve, employers will exhaust the local talent pool,” he said. “If job seekers are still unable or unwilling to move at that point, it is likely to stall companies’ expansion plans and ultimately stall economic growth.”

Los Angeles Times, January 26, 2012

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