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MERS Mortgage Electronic Registration Systems

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For information about Southern California luxury homes in Los Angeles County, Orange County and San Diego County real estate, call Bob Cumming of Keystone Group Properties at 310-496-8122. Keystone Group Properties services discriminating buyers of coastal Southern California real estate in Malibu to homes near the waterfront in Newport Beach to La Jolla.

MERS Mortgage Electronic Registration Systems

MERS’ primary function is to act as a document custodian. Major players in the mortgage lending industry created MERS to simplify the process of transferring mortgages by avoiding the need to re-record liens – and pay county recorder filing fees – each time a loan is assigned. “Instead, servicers record loans only once and MERS’ electronic system monitors transfers and facilitates the trading of notes …” Currently over half of all new residential mortgage loans in the United States are registered with MERS and recorded in county recording offices in MERS’ name.

This has reduced transparency in the mortgage market in two ways. First, consumers and their counsel can no longer turn to the public recording systems to learn the identity of the holder of their note. Today, county recording systems are increasingly full of one meaningless name, MERS, repeated over and over again. But more importantly, all across the country, MERS now brings foreclosure proceedings in its own name – even though it is not the financial party in interest. This is problematic because MERS is not prepared for or equipped to provide responses to consumers’ discovery requests with respect to predatory lending claims and defenses. In effect, the securitization conduit attempts to use a faceless and seemingly innocent proxy with no knowledge of predatory origination or servicing behavior to do the dirty work of seizing the consumer’s home.

Consumers, who are facing foreclosure, that try to assert predatory lending defenses are often forced to join the party – usually an investment trust – that actually will benefit from the foreclosure. As a simple matter of logistics this can be difficult, since the investment trust is even more faceless and seemingly innocent than MERS itself. The investment trust has no customer service personnel and has probably not even retained counsel.

Inquiries to the trustee – if it can be identified – are typically referred to the servicer, who will then direct counsel back to MERS. This pattern of non-response gives the securitization conduit significant leverage in forcing consumers out of their homes. The prospect of waging a protracted discovery battle with all of these well funded parties in hopes of uncovering evidence of predatory lending can be too daunting even for those victims who know such evidence exists. So imposing is this opaque corporate wall, that in a “vast” number of foreclosures, MERS actually succeeds in foreclosing without producing the original note – the legal sine qua non of foreclosure – much less documentation that could support predatory lending defenses.

A critique of the effect of securitization lies in the impact it has on civil procedure. Discovery, negotiation, and litigation in general is more expensive for consumers with securitized loans than it is for loans funded by the traditional secondary market. Legal scholars have made a compelling case for the serious potential consequences for consumers when businesses use procedural dispute resolution costs as a hedge against enforcement of substantive law.

Moreover, an extensive literature demonstrates the great vulnerability of our civil justice system to manipulation of procedure in general, and discovery in particular. For example, a federal district judge’s remarks from the late 1970s seem equally resonant today:

The civil justice system in the United States depends on the willingness of both litigants and lawyers to try in good faith to comply with the rules established for the fair and efficient administration of justice. When those rules are manipulated or violated for purposes of delay, harassment or unfair advantage, the system breaks down. There continues to be abuse of the judicial process. Abuse of the judicial process occurs most often in connection with discovery. Unjustified demands for and refusals to provide discovery prolong litigation and drive up its costs. Fabrication and suppression of material facts are regrettably common occurrences, although lawyers and judges are often reluctant to admit it.

Given these observations, we should not be surprised to find a business system that derives its revenue from creating procedural roadblocks in the way of consumers litigating from the brink of homelessness.

One characteristic of structured finance is the erection of such barriers. In traditional two and three-party mortgage markets, consumers and their counsel had a clearer idea of whom they were borrowing from and who might seek to foreclose upon them if they failed to repay. Service of process, interrogatories, depositions, and negotiations could be expected to involve only one company which was responsible for all, or nearly all, the relationship functions associated with the loan.

By comparison, selling a loan into a contemporary structured finance conduit can force consumers to communicate with and litigate against many more business entities. Even simple litigation tasks, such as service of process, interrogatories, and requests for production of documents, can become much more complicated in structured finance. One could serve one party years’ ago. Today, one might need to serve ten or more different parties or businesses.

This is a major challenge as the consumer will almost always have no knowledge of the name, address or other contact information for many of these firms. Legal counsel for the foreclosing party most likely does not know which businesses were involved in performing the various functions associated with the loan. Phone calls to the loan’s servicer are frequently ignored, subject to excruciating delays, and typically can only reach unknowledgeable staff who themselves lack information on the larger business relationships.

Securitization trustees are not in the business of counseling the thousands of mortgagors pooled in each of the many real estate trusts they oversee. Policy makers must not underestimate the staggering difficulty of reconstructing the facts involved in only one loan. Securitization creates an opaque business structure that consumers have great difficulty forgathering.

Securitization also complicates the paper trail for a given mortgage by facilitating frequent permutations in the servicing and ownership history of the loan. One of the benefits of securitization is that it allows trustees to shop for the most efficient servicer, reassigning servicing rights for loan pools when a better deal comes along. And, depending on how the securitization conduit is structured, a loan may undergo several assignments in route to its destination pool. While these changes may help ensure that the pool securities pay out on time and otherwise manage risks to the businesses involved, they also raises costs for the consumer attempting to piece together who did what to them.

Mortgage loan documentation has become more complex, the organizational technology of securitization has displaced older, more transparent, public systems for maintaining records. Nowhere is this more apparent than the use of the Mortgage Electronic Registration System, or MERS, to circumvent county recording offices.

It is suggested the consumer consult with a legal firm that is most experienced in working with MERS and the multiple issues.

Malibu CA Showcase of Homes

Foreclosure or Bankruptcy: Best Course of Action?

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

Foreclosure or Bankruptcy: What Might Be the Best Course of Action?

While millions of Americans are severely impacted by the economy, we find that more and more families are falling behind in their mortgage payments. A number of families have already or will be faced with the decision of what to do. Is it better to lose your house to foreclosure or file for bankruptcy protection?

Neither option is good for future credit considerations. A foreclosure will remain on your credit history for 7 years, while a bankruptcy remains for 10 years. In spite of the fact a foreclosure stays on the credit report for less time than a bankruptcy, mortgage lenders and banks look more seriously at foreclosures as normally a bankruptcy does not include the house.

It is suggested to contact your lender even if you are behind in payments or have received an official “notice of default” saying you’re several months behind, you still have time before the formal foreclosure process begins.

Foreclosure should not be foregone conclusion. Try to avoid it. The first question you need to decide is whether you want to keep your house or give it up. If you want to keep it, you need to try to work out a plan to get back on track. This involves either making up for the missed payments – which you can do all at once or try to spread out – or coming up with a new plan. One option is to have the loan modified – at a lower interest rate, for example. Or you can ask for “forbearance,” which basically means the lender suspends payments until you can get back on your feet. If you’re in over your head and bought too much house, though, these options probably aren’t going to help. It is suggested you consider professional help in modifying your loans.

It is against California law for an organization to collect up-front fees. If you consider wanting professional help, it is suggested you interview a number of attorneys and law firms and get references. Look at the alternatives and most importantly listen to professional advice and form your own opinion. Make a decision only after this process.

You may have to consider moving. Even if you do lose your house, you don’t want a foreclosure on your record when you go looking for a smaller house or a place to rent. One option is to ask the lender to hold off on foreclosing until you sell. If your mortgage is bigger than your house is worth, you are looking at what’s called a “short sale.”

You can also try something called a “deed in lieu of foreclosure” – which basically means you turn over your house to the lender and walk away without owing anything. But you’ll need to work this out with the lender: you can’t just walk away.

While it’s possible to work out one of these solutions with your lender on your own, you may have better luck with the help of someone who specializes in the process. A good attorney who knows real estate law can help, but you may not be able to afford that. A credit counselor (from an accredited, non-profit agency, not the slime balls who spam you with bogus promises of making your debts “go away”) is another option. Lenders are more likely to go along if a competent third party is there to help smooth the process. California law does not permit upfront fees to credit counselors or parties claiming they can modify loans. Fees can be paid to California licensed attorneys provided they are providing a service. It is suggested you interview a number of attorneys and law firms and make a decision only after this process has been completed.

If all else fails, you may have to consider allowing foreclosure to proceed – or filing for bankruptcy. It depends on each person’s situation. It is suggested one consult with a good credit counselor and a bankruptcy attorney who can review your options and walk you through the various options.

To summarize, the key is to start this process early on and before a notice of default is received.

Newport Beach CA homes for  sale under $4,000,000

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

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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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Sales Stir Hope for Housing Market

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For information about high-end Los Angeles County Southern California luxury real estate and luxury homes in coastal 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 exclusive So Cal real estate from Newport Beach, Dana Point, and Coto de Caza; to Marina Del Rey, Hermosa Beach, and Ladera Ranch; to Pacific Palisades, Rancho Margarita, Santa Monica, Malibu, and Irvine, and inland to Beverly Hills California real estate.

Sales Stir Hope for Housing Market

Sales of previously owned homes rose in December for the third straight month, bringing the supply of homes listed for sale to the lowest level since 2006 and offering a glimmer of hope that the housing market could be starting to climb out of a profound downturn.

Existing-home sales increased 5% in December from a month earlier, to a seasonally adjusted annual rate of 4.61 million units, the National Association of Realtors said Friday. Lawrence Yun, the Realtors’ chief economist, called the December gain “a good finish to a very tough year.”

Southern California Real EstateMany economists had predicted that 2011 would be the worst year on record for existing home sales, but the year ended with 4.26 million sales, about 1.6% higher than the 4.19 million existing homes sold in 2010. Market-watchers attributed this to a minor surge in sales at year-end, driven by historically low mortgage rates, falling prices, active investor-buyers and increasing consumer confidence.

Still, economists cautioned that it’s too early to assume that the market is recovering. “These were positive numbers, but that doesn’t mean the market is getting better. Lenders have been trying to get rid of distressed homes, and investors been snapping them up,” said Patrick Newport, chief economist at IHS Global Insight. According to the Realtors report, investors purchased 21% of all homes in December, up from 19% in November.

The inventory of homes for sale declined in December to 2.38 million, the equivalent of a 6.2-month supply, assuming the pace of sales remain at December’s level. A six-month supply of homes typically is considered healthy, although NAR’s numbers don’t take into account the “shadow inventory” of homes that are either in foreclosure or on bank balance sheets and not yet listed for sale.

Prices, meanwhile, continue to fall. The median price in December was $164,500, down 2.5% from a year earlier. Prices were down in all regions except the West, where prices rose slightly, compared with a year ago. For all of 2011, the median was $166,100, the lowest since 2002.

“What you really want to see is sales going up, inventories going down, and prices going up, not down,” said David Semmens, an economist with Standard Chartered. “People still feel they can hold off buying a house because the recovery won’t be that aggressive. It’s still very much a buyer’s market.”

That buyer’s market allowed Andrew Gonzales, a 24-year-old police officer in Santa Fe, N.M., to be picky about price when looking for a home for himself and his three-year-old daughter. He closed last month on a $132,000, three-bedroom home in Rio Rancho, a suburb of Albuquerque, after the price was cut twice. Just before closing, the home was appraised for $18,000 higher than the sales price, at $150,000, by a private appraiser.

“I got tired of paying rent, and I’m a single father, so I wanted a home for my daughter,” he said. “I was just waiting for the price to come down.”
Article courtesy of The Wall Street Journal, January 21, 2012

Hermosa Beach Properties for Sale

Interest rates should stay low until late 2014

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For information about luxury Los Angeles real estate, Orange County CA homes, and coastal San Diego homes in coastal areas of Southern California, call Bob Cumming of Keystone Group Properties at 310-496-8122.  Keystone Group Properties services buyers and sellers of exclusive Southern California homes—Newport Beach and Laguna Beach to San Juan Capistrano and Marina Del Rey, Malibu, and Irvine as well as exclusive Beverly Hills real estate and distinguished Bel Air and Beverly Glen homes.

Interest rates should stay low until late 2014

The Federal Reserve signaled Wednesday that a full economic recovery could take nearly three more years, and it went further than ever to assure consumers and businesses that they will be able to borrow cheaply well into the future.

The central bank said it would probably not increase its benchmark interest rate until late 2014 at the earliest — a year and a half later than it had previously said.

The new timetable showed the Fed is concerned that the recovery remains stubbornly slow. But it also thinks inflation will stay tame enough for rates to remain at record lows without igniting price increases.

Chairman Ben Bernanke cautioned that late 2014 is merely its “best guess.” The Fed can shift that plan if the economic picture changes. But he cast doubt on whether that would be necessary.

“Unless there is a substantial strengthening of the economy in the near term, it’s a pretty good guess we will be keeping rates low for some time,” he said.

The Fed has kept its key rate at a record low near zero for about three years. Its new time frame suggests the rate will stay there for roughly an additional three years.

The bank’s tepid outlook also suggests it’s prepared to do more to help the economy. One possibility is a third bond-buying program that would seek to further drive down rates on mortgages and other loans to embolden consumers and businesses to borrow and spend more

In a statement after   a two-day policy meeting, the Fed said it stands ready to adjust its “holdings as appropriate to promote a stronger economic recovery in the context of price stability.”

Treasury yields fell after the midday announcement. But yields stopped falling after the bank later issued forecasts for the economy and interest rates. They showed that while some members foresee super-low rates beyond 2014, six of the 17 members forecast a rate increase as early as this year or next.

It was the first time the Fed had released interest-rate forecasts from its committee members. It will now do so four times a year, when it also updates its economic outlook.

The rate forecasts are an effort to provide more explicit clues about the Fed’s plans. They also coincide with a broader Fed effort to make its communications with the public more open.

Lower yields on bonds tend to encourage investors to shift money into stocks, which can boost wealth and spur more spending.

Stocks, which had traded lower before the Fed’s announcement, quickly recovered their losses. The Dow Jones industrial average closed at 12,756.96, its highest close in more than eight months.

Some economists said the new late-2014 target may foreshadow further Fed action to try to invigorate the economy.

Julie Coronado, an economist at BNP Paribas, said she thought the Fed was indicating that it will step up its purchases of bonds and other assets if economic growth fails to accelerate — even if it doesn’t slow.

That is a “very low bar indeed,” she wrote in a note to clients.

Other analysts fear that the Fed’s longer-term timetable for a rate increase could hamstring it, even though Bernanke stressed the Fed’s ability to adjust rates as it sees fit.

Dana Saporta, an economist at Credit Suisse, worried that the much-longer timetable would compromise the Fed’s credibility if it must raise rates sooner because of unexpectedly strong growth and inflation.

“It’s striking that the Fed would make an implicit commitment for almost three years,” Saporta said. “It seems like an awfully long time to make such a statement. Given that no one knows what will happen … the (Fed) may eventually regret this.”

The central bank slightly reduced its outlook for growth this year, from as much as 2.9 percent forecast in November down to 2.7 percent. For the first time, the Fed provided an official target for inflation — 2 percent — in a statement of its long-term policy goals.

The bank sees unemployment falling as low as 8.2 percent this year, better than its earlier forecast of 8.5 percent. December’s unemployment rate was 8.5 percent.

Those rates are still far higher than normal. The Fed didn’t set a formal target for unemployment, but it said a rate between 5.2 and 6 percent would be consistent with a healthy economy.

Bernanke noted that the Fed expects only moderate growth over the next year. He pointed to the persistently depressed housing market and continued tight credit for many consumers and companies.

But for now, the American economy is looking a little better. Companies are hiring more, the stock market is rising, factories are busy and more people are buying cars. Even the home market is showing slight gains after three dismal years.

Associated Press, January 25, 2012

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