The LA Times posted a great article highlighting how many homeowners facing foreclosure are being taken advantage of. The California Association of Realtors has been warning consumers for some time now against those companies that charge upfront fees to modify a loan. That is a DRE (Dept. of Real Estate) violation. Many companies get around it by connecting with a law firm and they call it something similar to a "retainer" fee, just like if you were going to hire a lawyer to handle any other legal matter. The fact of the matter is, this brings the dark cloud back to the Real Estate industry. It seems that there is never a shortage of the "fast-buck" scam artists when there are desperate people just looking for help. I am happy to read in this article that the autorities are cracking down on these scams, but the distressed homeowners are now left with very little options.
http://www.latimes.com/business/la-fi-foreclosure-scams16-2009jul16,0,1422452.story
Showing posts with label real estate. Show all posts
Showing posts with label real estate. Show all posts
Friday, July 17, 2009
Friday, June 19, 2009
Wednesday, June 17, 2009
The Truth About The California 90-Day Foreclosure Moratorium
Taken From C.A.R. (California Assn. of Realtors) Legal Forum
Recent news headlines have caused confusion by mischaracterizing the new California Foreclosure Prevention Act as a “90-day moratorium” and incorrectly stating that the lender must modify delinquent loans before it begins foreclosure. In reality, the foreclosure process for certain owner-occupied residential first trust deeds has been extended by 90 days, effective June 15, but an exemption is available for lenders with comprehensive loan modification programs as defined by the Act.
90-DAY EXTENSION TO FORECLOSURE PROCESS
Q 83. What, in a nutshell, is the new law extending the foreclosure process by 90 days?
A Under the new California Foreclosure Prevention Act, lenders foreclosing on certain loans are prohibited from giving a notice of sale until the lapse of at least 3 months plus 90 days after the filing of the notice of default (see Question 88). A loan servicer can obtain an exemption from this requirement by demonstrating that it has a comprehensive loan modification program (see Questions 89 to 94).
Q 84. What is the purpose of this law?
A The purpose of this law is to try to stem the tide of foreclosures and their adverse consequences by providing additional time for lenders to work out loan modifications with borrowers as well as creating an incentive for lenders to establish comprehensive loan modification programs.
Q 85. When will this law be in effect?
A This bill, which was enacted into law on February 20, 2009 along with the state budget, will go into effect 90 days thereafter which will be on or about May 22, 2009. The appropriate commissioners must adopt regulations to carry out this law no more than 10 days after the date this law takes effect (Cal. Civil Code § 2923.53(d)). The law becomes operative 14 days after the issuance of such regulations (Cal. Civil Code § 2923.52(d)).
This law will stay in effect only until January 1, 2011 at which time it will be repealed, unless it is deleted or extended by statute (Cal. Civil Code § 2923.52(d)).
Q 86. How does this new law affect the foreclosure timeline?
A Under preexisting law, a lender who files a notice of default in the foreclosure process must wait at least 3 months before giving a notice of sale (Cal. Civil Code § 2924). The new law extends that 3-month period by an additional 90 days.
Also under preexisting law, the general rule of thumb is that the entire foreclosure process takes a minimum of 4 months from the filing of a notice of default until the final trustee’s sale. Under the new law, that general rule of thumb is extended by 90 more days for a total of about 7 months, unless the lender is exempt. For more information about the foreclosure process, C.A.R. offers a legal article entitled Foreclosure Timeline.
Q 87. Under the new law, is the minimum time frame from the filing of a notice of default to the notice of sale a total of 6 months or 180 days?
A Neither. The way the law is written, the minimum time frame from the filing of the notice of default to the notice of sale is technically “3 months plus 90 days.”
Q 88. What type of loan falls under the new law extending the foreclosure process by 90 days?
A Unless otherwise exempt, the 90-day extension to the foreclosure process applies to loans that meet all of the following requirements:
• The loan was recorded from January 1, 2003 to January 1, 2008, inclusive;
• The loan is secured by a first deed of trust for residential real property;
• The borrower occupied the property as a principal residence at the time the loan became delinquent; and
• A notice of default has been recorded on the property.
(Cal. Civil Code § 2923.52(a).)
Q 89. What are the exceptions to the new law extending the foreclosure process by 90 days?
A Most notably, a loan servicer is exempt from the 90-day extension to the foreclosure process if the loan servicer has obtained an order of exemption based on the implementation of a comprehensive loan modification program (Cal. Civil Code § 2923.53(a)) (see Questions 89 to 94). The order of exemption must be current and valid at the time the notice of sale is given (Cal. Civil Code § 2923.52(b)).
Other exceptions to the 90-day extension include the following:
• Certain state or local public housing agency loans (Cal. Civil Code § 2923.52(c)).
• When a borrower has surrendered the property as evidenced by a letter confirming the surrender or delivery of the keys to the property to the lender or authorized agent (Cal. Civil Code § 2923.55(a)).
• When a borrower has contracted with any person or entity whose primary business is advising people who have decided to leave their homes on how to extend the foreclosure process and avoid their contractual obligations to the lenders (Cal. Civil Code § 2923.55(b)).
• When a borrower has filed a bankruptcy case and the court has not entered an order closing or dismissing the case or granting relief from a stay of foreclosure (Cal. Civil Code § 2923.55(c)).
Q 90. What constitutes a comprehensive loan modification program?
A A comprehensive loan modification program that may exempt the loan servicer from the 90-day extension to the foreclosure process includes all of the following features:
• The loan modification program is intended to keep borrowers whose principal residences are located in California in those homes when the anticipated recovery under loan modification exceeds the anticipated recovery through foreclosure on a net present value basis (Cal. Civil Code § 2923.53(a)).
• It targets a 38 percent or less ratio of the borrower’s housing-related debt to the borrower’s gross income (Cal. Civil Code § 2923.53(a)). Housing-related debt is debt that includes loan principal, interest, property taxes, hazard insurance, flood insurance, mortgage insurance and homeowner association fees (Cal. Civil Code § 2923.53(k)(2)).
• It includes some combination of loan modifications terms as specified (Cal. Civil Code § 2923.53(a)) (see Question 91).
• The loan servicer seeks long-term sustainability for the borrower (Cal. Civil Code § 2923.53(a)).
Q 91. What are the loan modification terms that must be included in a comprehensive loan modification program?
A A comprehensive loan modification program that may qualify for exemption from the new law extending the foreclosure process by 90 days must include some combination of the following features:
• An interest rate reduction, as needed, for a fixed term of at least five years;
• An extension of the amortization period for the loan term to no more than 40 years from the original date of the loan;
• Deferral of some portion of the unpaid principal balance until loan maturity;
• Principal reduction;
• Compliance with a federally mandated loan modification program; or
• Other factors that the appropriate commissioner determines.
(Cal. Civil Code § 2923.53(a)(3).) See also Question 92.
Q 92. Does a loan servicer have to modify loans to get an exemption from the 90 day extension to the foreclosure process?
A No. A loan servicer is not required to modify a loan for a borrower who is not willing or able to pay under the modification. Furthermore, a loan servicer is not required to violate any contractor agreement for investor-owned loans. (Cal. Civil Code § 2923.53(i).)
Q 93. How does a loan servicer obtain an order of exemption from the new law extending the foreclosure process by 90 days?
A A loan servicer may apply to the appropriate commissioner (see Question 94) for an order exempting loans that it services from the new law extending the foreclosure process by 90 days (Cal. Civil Code § 2923.53(b)(1)). Upon receipt of an initial application for exemption, the commissioner must issue a temporary order exempting the mortgage loan servicer from the 90-day extension to the foreclosure process (Cal. Civil Code § 2923.53(b)(2)). Within 30 days of receipt of the application, the commissioner must make a final determination by issuing a final order exempting the loan servicer or denying the application (Cal. Civil Code § 2923.53(b)(3)). If the application is denied, the temporary order of exemption shall expire 30 days after the date of denial (Cal. Civil Code § 2923.53(b)(1)).
Q 94. To which commissioner does a loan servicer apply for exemption?
A A lender or loan servicer would apply for an exemption to the following commissioner as appropriate:
• Commissioner of the Department of Financial Institutions for commercial and industrial banks, savings associations, and credit unions organized in California to service mortgage loans;
• Commissioner of the Department of Real Estate for licensed real estate brokers servicing mortgage loans; and
• Commissioner of the Department of Corporations for licensed residential mortgage lenders and servicers, licensed finance lenders and brokers, and any other entities servicing mortgage loans not regulated by the Department of Financial Institutions or Department of Real Estate.
(Cal. Civil Code § 2923.53(k)(1).)
Q 95. How does a homeowner ascertain whether his or her loan servicer is exempt from the 90-day extension to the foreclosure process?
A The Secretary of Business, Transportation and Housing must maintain a publicly-available Internet website disclosing the final orders granting exemptions, the date of each order, and a link to Internet websites describing the loan modification programs (Cal. Civil Code § 2923.52(f)) (see also Question 96).
Q 96. Does a loan servicer have to inform the borrower as to whether the loan servicer is exempt from the longer foreclosure timeframe?
A Yes. A notice of sale must include a declaration from the loan servicer stating both of the following:
• Whether the loan servicer has obtained a final or temporary order of exemption from the 90-day extension to the foreclosure process that is current and valid on the date the notice of sale is filed; and
• Whether the 90-day extension to the foreclosure process under the new law does not apply.
The law requires the loan servicer’s declaration of exemption on the notice of sale, even though it may have been more helpful for the borrower if the declaration was on the notice of default. This requirement will stay in effect only until January 1, 2011 at which time it will be repealed, unless it is deleted or extended by statute. (Cal. Civil Code § 2923.54.)
Q 97. What is the penalty for violating this law?
A Anyone who violates this law shall be deemed to have violated his or her license law as it relates to these provisions (Cal. Civil Code § 2923.53(h)).
Q 98. Where do I find this law?
A This law is set forth at sections 2923.52 to 2923.55 of the California Civil Code. The full text of this law is available at the California Legislative Counsel website at www.leginfo.ca.gov.
Saturday, June 6, 2009
The O.C. Coastal Market Is Not Immune To Foreclosures
Bank Owned Homes for Sale in Laguna Beach
Even the coast has been hit with distressed properties this year. Since January, twelve Bank-Owned homes have sold in Laguna Beach. Listed below are the two remaining active foreclosures.
1) Great panoramic
views of the Ocean, canyon & hills views. 2 bedrooms & 2 baths, large living room with fireplace & great views, step down dining area & kitchen at main level & large area-added/unfinished 3rd bedroom, bathroom, steam room & large walk in closet at lower level addition can be completed at buyers choice/discretion, great potential for Laguna Beach with ocean views!!!
2)
This is a sign of the times. There are sure to be more Bank Owned homes in the high end, coastal real estate market to enter the game. This will undoubtedly put pressure on prices, and hopefully stimulate the sales cycle. Of the 77 homes sold in Laguna Beach this year, 12 were Bank-Owned.
For information on these or other market conditions, or to receive a Personalized Market Blueprint, please don't hesitate to call me at 949.307.5944
Saturday, May 30, 2009
Monday, January 26, 2009
Investing in Foreclosures
Prior to the auction
This first opportunity is called pre-foreclosure. When a property is in pre-foreclosure, the owner still has a chance to stop the foreclosure process by paying off what is owed or by selling the property. Lenders are required to advertise foreclosures in the legal newspaper for four consecutive weeks prior to selling the property at auction. During that time, the real estate investor can seek to purchase the property, either by paying cash for it, or by attempting to purchase the home contingent upon his ability to reinstate the foreclosing loan and taking title “subject-to” the existing loan.
Buying a pre-foreclosure can be a method to purchase a property with little or no money down and no credit especially if you are able to purchase the property “subject-to” the existing loan. Investors get the equity in the property in exchange for helping the property owners avoid foreclosure. The downside of purchasing a pre-foreclosure is that most homeowners are in denial, and it may be difficult to deal with them.
Purchases made during pre-foreclosure are considered “regular” sales in the sense that there will be a written purchase contract, your attorney will search title and offer you title insurance, and there will be a normal closing at your attorney’s office just as in any other home purchase.
RealQuest is one of the few sites that allow you to search for properties that are in pre-foreclosure. By you being find these opportunities faster than other real estate investors, you have the upper hand in the game. A subscription to RealQuest also delivers you the owner’s name and contact information, making it that much easier to proverbially “get your foot in the door” and make your offer to the existing owner.
At the auction
The second opportunity is in purchasing the property at the courthouse steps during the public auction. If nothing has been done to cure the event of default which led to the original foreclosure notice, the lender will, through the foreclosing attorney, conduct an auction on the courthouse steps. The property will be sold for cash. Only bank money orders will be accepted, and you must bring the funds with you. The bidding opens with a bid on behalf of the lender in the amount of the indebtedness plus all late payments plus attorney fees. Bidding continues until the highest bidder wins. Typically, all junior liens on the property are wiped out at the auction.
Purchasing a property at the courthouse steps lets you avoid having to deal with a property owner in denial. The downside is that you are most likely purchasing a property unaware of the interior condition of the property. RealQuest allows you to search the properties that are going to auction, so hopefully you can do some investigative work prior to the actual courthouse step auction date.
Lastly, this is not considered a “regular” sale because there is no contact and typically no title search is performed.
After the auction
This final opportunity is called REO. If, after the opening bid from the lender, there are no additional bids, then the ownership of the property is transferred to the lender, and the lender will typically try to sell the property as quickly as possible. Lenders will list these houses with real estate agents who will place them in the multiple listing services or they will hire auction houses to conduct another public auction. Lenders consider these REO properties to be “non-performing assets,” and want them off their books quickly; especially if they believe they have more coming in behind them. Often they will sell for substantially less than the loan amount, especially if the property is in poor condition or the lender has a large inventory of such property. Prior to the purchase the investor will be able to inspect the property.
This is a “regular” sale in the sense that there will be a contract, title search, and a standard closing in an attorney’s office.
There are multiple opportunities to purchase foreclosures and they can be purchased at these three distinct phases of the foreclosure process.
By | Jennifer Minge
This first opportunity is called pre-foreclosure. When a property is in pre-foreclosure, the owner still has a chance to stop the foreclosure process by paying off what is owed or by selling the property. Lenders are required to advertise foreclosures in the legal newspaper for four consecutive weeks prior to selling the property at auction. During that time, the real estate investor can seek to purchase the property, either by paying cash for it, or by attempting to purchase the home contingent upon his ability to reinstate the foreclosing loan and taking title “subject-to” the existing loan.
Buying a pre-foreclosure can be a method to purchase a property with little or no money down and no credit especially if you are able to purchase the property “subject-to” the existing loan. Investors get the equity in the property in exchange for helping the property owners avoid foreclosure. The downside of purchasing a pre-foreclosure is that most homeowners are in denial, and it may be difficult to deal with them.
Purchases made during pre-foreclosure are considered “regular” sales in the sense that there will be a written purchase contract, your attorney will search title and offer you title insurance, and there will be a normal closing at your attorney’s office just as in any other home purchase.
RealQuest is one of the few sites that allow you to search for properties that are in pre-foreclosure. By you being find these opportunities faster than other real estate investors, you have the upper hand in the game. A subscription to RealQuest also delivers you the owner’s name and contact information, making it that much easier to proverbially “get your foot in the door” and make your offer to the existing owner.
At the auction
The second opportunity is in purchasing the property at the courthouse steps during the public auction. If nothing has been done to cure the event of default which led to the original foreclosure notice, the lender will, through the foreclosing attorney, conduct an auction on the courthouse steps. The property will be sold for cash. Only bank money orders will be accepted, and you must bring the funds with you. The bidding opens with a bid on behalf of the lender in the amount of the indebtedness plus all late payments plus attorney fees. Bidding continues until the highest bidder wins. Typically, all junior liens on the property are wiped out at the auction.
Purchasing a property at the courthouse steps lets you avoid having to deal with a property owner in denial. The downside is that you are most likely purchasing a property unaware of the interior condition of the property. RealQuest allows you to search the properties that are going to auction, so hopefully you can do some investigative work prior to the actual courthouse step auction date.
Lastly, this is not considered a “regular” sale because there is no contact and typically no title search is performed.
After the auction
This final opportunity is called REO. If, after the opening bid from the lender, there are no additional bids, then the ownership of the property is transferred to the lender, and the lender will typically try to sell the property as quickly as possible. Lenders will list these houses with real estate agents who will place them in the multiple listing services or they will hire auction houses to conduct another public auction. Lenders consider these REO properties to be “non-performing assets,” and want them off their books quickly; especially if they believe they have more coming in behind them. Often they will sell for substantially less than the loan amount, especially if the property is in poor condition or the lender has a large inventory of such property. Prior to the purchase the investor will be able to inspect the property.
This is a “regular” sale in the sense that there will be a contract, title search, and a standard closing in an attorney’s office.
There are multiple opportunities to purchase foreclosures and they can be purchased at these three distinct phases of the foreclosure process.
By | Jennifer Minge
Wednesday, March 12, 2008
"How is the Orange County Market?"
That is the standard question I am often asked when I meet someone new or when I talk to a friend, client, or past client. The truth is... Homes Are Selling!
I know that is a crazy concept to most of you due to the constant bashing we hear and read in the local media. Quite honestly, this couldn't be a better time to make a move. Whether you are a first-time buyer or an equity seller, you can not go wrong in this market. Give me a call and I'll break that thought down for you.
Call our market whatever you want (adjusting, bursting, correcting, etc.), blame it on whomever you feel must take responsibility (predetory lending, subprime meltdown, economic recession, etc). The fact remains that there is a reality to face here.
If you're looking for someone that tracks the local market, has the facts in black and white, and can provide a real-time blueprint of the market conditions and how you can benefit from it, call the ProMark Team of Coldwell Banker.
Dont forget to visit www.promarkteam.com
Mark Gundlach, Real Estate Consultant
949-768-2329/714-654-3750
promarkteam@gmail.com
I know that is a crazy concept to most of you due to the constant bashing we hear and read in the local media. Quite honestly, this couldn't be a better time to make a move. Whether you are a first-time buyer or an equity seller, you can not go wrong in this market. Give me a call and I'll break that thought down for you.
Call our market whatever you want (adjusting, bursting, correcting, etc.), blame it on whomever you feel must take responsibility (predetory lending, subprime meltdown, economic recession, etc). The fact remains that there is a reality to face here.
If you're looking for someone that tracks the local market, has the facts in black and white, and can provide a real-time blueprint of the market conditions and how you can benefit from it, call the ProMark Team of Coldwell Banker.
Dont forget to visit www.promarkteam.com
Mark Gundlach, Real Estate Consultant
949-768-2329/714-654-3750
promarkteam@gmail.com
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About Me
- Mark Gundlach (This Week In Real Estate)
- South Orange County, CA, United States
- Mark Gundlach has been a resident of South Orange County since 1986. For Mark, giving back to the community is a high priority. As a member of the Newport Beach Junior Chamber organization, Mark participates and raises money for charities such as the American Cancer Society and Rebuilding Together. Gundlach comes to HÔM Real Estate Group with a strong background in client service. Typically his clients are new to the market and have not worked with a real estate professional before, or those that may have had a challenging experience in the past. Mark provides his clients with a personalized blueprint of the real estate market, and details how they can benefit. Adapting to the changing market, Mark has extensive training in Short-Sale negotiations and has successfully assisted many clients in these specialized sales. Mark would love the opportunity to meet you and assist you in any way he can. If you or someone you know is in need of real estate services, contact him first. Conversely, if you think Mark could be a referral source for you, let him know how he can help you grow your business.