Moratorium on Bank of America Foreclosures

Here is an article I read today on DSnews.com, Bank of America is now the fourth bank nationwide to place a moratorium on their foreclosures:


UPDATED to include PNC Financial’s reported foreclosure freeze and impending joint investigation of 40 states into servicers’ foreclosure procedures. The nation’s largest mortgage lender, Bank of America announced Friday that it is expanding its foreclosure moratorium from 23 states, as announced by the bank last week, to include all 50 states. The company explained in a statement, “Bank of America has extended our review of foreclosure documents to all fifty states. We will stop foreclosure sales until our assessment has been satisfactorily completed.” The company added, “Our ongoing assessment shows the basis for foreclosure decisions is accurate. We continue to serve the interests of our customers, investors, and communities. Providing solutions for distressed homeowners remains our primary focus.” BofA called for a halt on foreclosures in certain states when evidence surfaced that its internal staff may not have followed the letter of the law in reviewing and processing case paperwork. Such actions were spelled out in black and white when the Associated Press uncovered court documents with testimony from one of BofA’s top executives at a bankruptcy hearing in February. The exec admitted that she signed off on 7,000 to 8,000 foreclosure documents a month without even reading them or verifying their legitimacy. Incidences of so-called “robo-signers” that have been blindly rubber-stamping approvals of foreclosure actions because of the sheer volume of cases landing on their desks has led to foreclosure suspensions by now, three other big lenders – and some in the industry warn that the problem could be even more widespread. On September 20th, GMAC Mortgage was the first to halt foreclosures in 23 judicial states due to what it called an “internal procedural error.” JPMorgan Chase followed suit on September 30th. PNC Financial reportedly notified its industry partners that it is suspending foreclosures for 30 days in the judicial states while it reviews servicing procedures. Consumer advocacy groups, state attorneys general, and federal lawmakers are all calling for a nationwide foreclosure freeze until the banks can clear up the paperwork issues in question. Senate Majority Leader Harry Reid (D-Nevada) said he welcomed the decision announced by Bank of America to expand its foreclosure moratorium. “I thank Bank of America for doing the right thing by suspending actions on foreclosures while this investigation runs its course,” Sen. Reid said in a statement. “It is only fair … to suspend foreclosures until a thorough review of foreclosure processes is completed and homeowners can be assured that their documents are being analyzed properly. I urge other major mortgage servicers to consider expanding the area where they have halted foreclosures to all 50 states as well.” Members of Congress from both parties are petitioning for a federal investigation of mortgage servicers that have instituted foreclosure suspensions. An announcement is expected to come as early as Tuesday of a joint investigation by attorney general offices in as many as 40 states. Bloomberg reports that the coordinated effort will be led by Iowa Attorney General Tom Miller.

http://www.dsnews.com/articles/bank-of-america-halts-foreclosures-nationwide-2010-10-08

Today's Mortgage Rate... Lower Than Yesterday's

Here is an article I read on DSNews today. These new figures from Freddie Mac are stunning. With rates already at their lowest in over a half of a century, one has to wonder how low will they go? Here is the article:

How low can we go? When it comes to mortgage rates, the floor keeps dropping. Industry reports released Thursday show that interest rates for home loans – already at their lowest marks in more than a half-century – dropped again this week.

Market analysis conducted by Freddie Mac found that the 30-year fixed-rate mortgage (FRM) averaged 4.32 percent (0.8 point) for the week ending September 30, 2010. That’s down from 4.37 percent last week and tied with the all-time low in Freddie’s survey set four weeks ago.

The GSE reported that the 15-year FRM this week averaged a new record low of 3.75 percent (0.7 point). Last week, it came in at 3.82 percent.

The 5-year adjustable-rate mortgage (ARM) dropped to an average of 3.52 percent this week (0.6 point), according to Freddie Mac, also setting a new record low. The 1-year ARM rose slightly to 3.48 percent (0.7 point).

“Confidence in the state of the economy fell among consumers and businesses, which led to a decline in long-term bond yields and brought many mortgage rates to record lows this week,” said Frank Nothaft, Freddie Mac’s VP and chief economist.



Weakening confidence in the economy’s trajectory was evident despite notable improvements in household balance sheets. Nothaft cited a Federal Reserve report, which shows that homeowners have regained $1.0 trillion in home equity as of the second quarter of 2010, after losing more than $7.5 trillion over the three-year period ending in the first quarter of 2009.

A separate weekly study by Bankrate also put mortgage interest rates at record-lows. Bankrates survey is based on data gathered from the top 10 banks and thrifts in the top 10 U.S. markets.

The tracking company reported that rates for conforming 30-year fixed mortgages remained unchanged this week at their 4.5 percent low (0.36 point).

The average 15-year fixed mortgage retreated to 3.94 percent (0.31 point), down from 3.96 percent last week, while the larger jumbo 30-year fixed rate inched lower to 5.16 percent.

Bankrate says adjustable rate mortgages hit new lows also, with the average 5-year ARM decreasing to 3.68 percent and the average 7-year ARM falling to 3.91 percent.

According to Bankrate, mortgage rates remain at record lows, not as a result of poor economic data, but rather in expectation of additional efforts by the Federal Reserve to revive the economy.

“Specifically, investors are counting on the Fed to resume quantitative easing – purchases of government bonds in an effort to drive market interest rates even lower,” the company said in its report. “Investors have been front-running the Fed by buying government debt now, bringing bond yields to ultra-low levels. Mortgage bond investors are pricing for the risk that loans could be refinanced if the Fed’s efforts reduce mortgage rates further.”

House Bill Would Force Lenders to Decide on Short Sales in 45 Days

Here is some news I am passing on to you. It's an article I was emailed last week that states a house bill would force lenders to decide on short sales in 45 days. Here is the full article:

Distressed homeowners looking for a way out of their mortgage that doesn’t involve foreclosure may find relief is on the way from a new bill introduced in the U.S. House.

The legislation would impose a deadline on lenders to respond to short sale requests, requiring them to return an answer to the borrower within 45 days.

The bipartisan bill, Prompt Decision for Qualification of Short Sale Act of 2010 (H.R. 6133), is sponsored by Reps. Robert Andrews (D-New Jersey) and Tom Rooney (R-Florida).

Lenders have taken a lot of heat for the elongated timelines it takes to get an approval on a short sale proposal.

“I have heard from many short sellers in Florida whose potential homebuyers have walked away because they couldn’t get a ‘yes’ or ‘no’ from their lenders,” Rep. Rooney said. “This bill would spur growth in the housing market by helping sellers and buyers complete short sales quickly.”

The number of potential short sale properties is rising across the country. According to data from the National Association of Realtors (NAR), in the second quarter of

2010, Nevada, California, Florida, and Arizona are states where significant shares of all properties on the market are potential short sales: 32 percent, 28 percent, 27 percent, and 24 percent, respectively.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Arizona, says her organization and Realtors across the country strongly support the Andrews-Rooney bill, and are urging Congress to pass the legislation quickly.

“Unfortunately, homeowners who need to execute a short sale are severely hampered because lenders (loan servicers) are unable to decide whether to approve a short sale within a reasonable amount of time,” Golder said.

“Potential homebuyers are walking away from purchasing short sale property because the lender has taken many months and still not responded. Many consumers have mentioned that the delay in short sale price approval exceeds 90 days, and in many cases never arrives,” Golder said.

According to Rep. Rooney, the lending community has worked to improve the size and training of their workforce that handles short sales, but “progress has been extremely slow,” he says.

Rooney argues that for homeowners who owe more than their home is worth and are in real danger of losing their home, the short sale can help relieve them of the overwhelming financial burden of their mortgage.

Golder agrees. “NAR believes that quicker attention to the short sales process is vital to help homeowners who are underwater and their communities, as well as the nation’s economy,” she said.

Should I buy a home now? 10 Reasons Why you should.

Everywhere I go people ask me these hot topic questions, should I buy a home now? Is this as low as the market is going to get? When will the real estate market bounce back? Is it going to bounce back?

I think that home ownership is a beautiful thing and I feel that everyone must look at their personal situation to decide whether to buy or not. But if you are looking to buy, now is a great time. Of course this is my personal opinion, but here is an article from the Wall Street Journal that backs my sentiment with 10 reasons to buy now:

Enough with the doom and gloom about homeownership.

Sure, maybe there's more pain to come in the housing market. But when Time magazine starts running covers that declare "Owning a home may no longer make economic sense," it's time to say: Enough is enough. This is what "capitulation" looks like. Everyone has given up.

After all, at the peak of the bubble five years ago, Time had a different take. "Home Sweet Home," declared its cover then, as it celebrated the boom and asked: "Will your house make you rich?"

But it's not enough just to be contrarian. So here are 10 reasons why it's good to buy a home.

1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Yes, it's mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul.

Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach fair value in relation to household incomes. Case-Shiller since then: Down 18%.

2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won't see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.

3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell. Sure, you'll need to do your math. You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.

4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You'll feel better about your own place if you own it than if you rent. Many years ago, when I was working for a political campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun selling off public housing to the tenants. "You can tell the ones that have been bought," said my local guide. "They've painted the front door. It's the first thing people do when they buy." It was a small sign that said something big.

5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you're better off buying.

6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.

7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.

8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.

9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.

10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed–either deliberately, or by inaction. This is already happening. Even two years ago, when I toured the housing slump in western Florida, I saw bankrupt condo developments that were fast becoming derelict. And, finally, a lot of the "glut" simply won't matter: It's concentrated in a few areas, like Florida and Nevada. Unless you live there, the glut won't have any long-term impact on housing supply in your town.

630 W. 6th St. Price: $199,000

Another great short sale from LA City Short Sales!

Downtown LA

1 Bed / 1 Bath
APX SF: 700/AS

Location, Location, Location, Library Court Building is across the street and w/views to the Standard Hotel and Aon Center on 6th and Hope, right in the middle of the action & very safe. One bedroom apt w/ a beautiful tree-lined Hope St view, new condo complex blt in late 2006 is very quiet and secluded -- you feel like you are in an oasis downtown. Stainless steel appliances, granite counter-tops, and floor-to-ceiling windows for magnificent lighting. There is a security guard 24/7. The Library Court is located in the Financial District of Dwntwn LA. It has a fitness room, game room, computer room and sun deck, with downstairs restaurants such as Wolfgang Puck, Mitako Sushi, and Library Bar...just to name a few. This luxury unit is in walking distance to the trendy Ralph's supermarket, Staples Center, LA Live, Nokia Center and Metro subway (red and blue lines).SHORT SALE-AGENTS SEE PRIVATE REMARKS FOR MORE DETAILS

KW Mega Camp

Hey all... I am currently at kw Mega Camp. I will post pictures and commentary when I get back, but in the mean time here is a video of the state of the company I found on youtube.
Enjoy!

Revival of the Federal Homebuyer Tax Credit? DSNews.com

Although there has been no sign that the Federal Homebuyer Tax Credit will be back for sure, there has been a buzz about it. I know that it would be welcomed with open arms after the downfall in home sales in July. Here is an article from DSNews.com:

After a worse than expected falloff in home sales during the month of July, buzz about a possible revival of the federal homebuyer tax credit has begun to surface. The National Association of Realtors (NAR) reported last week that sales of previously owned homes plummeted 27 percent in July, hitting their lowest mark in 15 years. New home sales also took a dive, dropping nearly 13 percent from June to July.

Both reports were clear indications of the frailty of the housing market post-stimulus. Although, the steep declines were actually considered a by-product of the tax credits themselves, which expired on April 30 – payback for the incentives that pulled sales forward into the spring months.

HUD Secretary Shaun Donovan said on CNN’s “State of the Union” program this weekend, “The July numbers were worse than we expected, worse than the general market expected, and we are concerned. That’s why we are taking additional steps to move forward.”



Donovan said it was too early to say for sure, after only one month’s numbers, whether the administration would revive its popular homebuyer tax credits to give the housing markets another much-needed boost, but he didn’t wholly rule it out as an option.

“All I can tell you is that we are watching very carefully,” Donovan told CNN. “We’re going to be focused like a laser on where the housing market is moving going forward, and we are going to go everywhere we can to make sure this market stabilizes and recovers.”

Two U.S. Senate candidates from Florida, one of the hardest hit states by the housing downturn, spoke out in favor of bringing back the federal tax credits for homebuyers on the CNN program.

Florida Gov. Charlie Crist, who is running as an independent for a Florida Senate seat, said a reinstatement of the homebuyer tax break “would be a great lift” and “would stimulate the economy…[and] increase home sales in Florida.”

“People are hurting, and they’re looking for answers. And that would be a good one. I would absolutely encourage the president to support [another homebuyer tax credit],” Crist told CNN.

When asked if he was also onboard with renewing the homebuyer tax credit incentive, U.S. Rep. Kendrick Meek, a Democrat running against Crist for the Senate seat, replied “Absolutely.”

“It was essential to helping individuals buy a home again. That tax credit means an awful lot here in Florida. We need more of it,” Meet said.

Source DSNews: New Mortgage Disclosure and Compensation Rules

Good news for consumers from DSNews.com. Note most of these rules don't come into effect until 2011. While this is a good step in the right direction for consumer protection, just note that you need to be educated and well informed when making life changing decisions. We are here to help guide and educate you in life's big decisions. Here is the article:


The U.S. Federal Reserve on Monday published a long list of new rules intended to protect consumers from what the central bank describes as “unfair, abusive, or deceptive lending practices.” The documents outline new requirements that will govern compensation to mortgage professionals and disclosures to borrowers regarding their home loans.

The Fed announced final rules prohibiting mortgage brokers and lenders’ mortgage loan officers from receiving compensation based on the interest rate or other loan terms – the practice commonly referred to as yield spread premiums, in which brokers and loan officers receive a bigger kick-back for steering borrowers to accept a higher interest rate than that required by the lender.

This controversial pay structure has been widely blamed for pushing unwitting consumers into high-cost, unsustainable mortgages.

“[The new rule] will prevent loan originators from increasing their own compensation by raising the consumers’ loan costs, such as by increasing the interest rate or points,” the Fed said in a statement. “Loan originators can continue to receive compensation that is based on a percentage of the loan amount, which is a common practice.”

The final rule also prohibits a loan originator that receives compensation directly from the consumer from also receiving compensation from the lender or another party. It addition, it makes it illegal for loan originators to direct a consumer to accept a mortgage loan that is not in the consumer’s interest in order to increase the originator’s compensation.

These final rules on mortgage broker and loan officer compensation become effective April 1, 2011.

In addition, an interim rule has been published that revises the disclosure requirements for closed-end mortgage loans under Regulation Z-Truth in Lending Act

(TILA). Beginning January 30, 2011, lenders would be required to fully explain to borrowers any increases in their mortgage payments that might occur as a result of variable rates.

Lenders would have to provide borrowers with a payment table that includes the maximum interest rate and payment that can occur during the first five years and a “worst case” example showing the maximum rate and payment possible over the life of the loan. The new rule also requires lenders to disclose certain features, such as balloon payments, or options to make only minimum payments that will cause loan amounts to increase.

The Fed is soliciting comment on the interim TILA changes for 60 days, before considering the adoption of a permanent rule.

One TILA rule change that the Federal Reserve made final on Monday is that consumers must be notified in writing within 30 days if their mortgage loan is sold or transferred. The mandatory compliance date for this rule is January 1, 2011.

The regulator has also proposed another set of consumer protections related to TILA’s Reg Z. The latest proposal would mandate that for all mortgage loans, consumers have time to review their loan cost disclosures before they become obligated for fees, requiring lenders to refund the fees if the consumer decides to withdraw the application within three days of receiving the disclosures.

In addition, it would ensure consumers receive new disclosures when the parties agree to modify key terms of an existing closed-end mortgage loan, and when a consumer requests information from their loan servicer about the owner of the loan, the servicer must provide the information within 10 business days.

Concerning reverse mortgages, the new consumer protection proposal would improve the disclosures consumers receive, impose rules for reverse mortgage advertising, and prohibit creditors from conditioning a reverse mortgage on the consumer’s purchase of another product, such as annuities or long-term care insurance. It would also require that a consumer receive counseling about reverse mortgages before a creditor can impose nonrefundable fees or close the loan.

The Fed has also proposed a rule to revise the escrow account requirements for higher-priced, first-lien jumbo mortgages. The proposed rule implements a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and would increase the annual percentage rate (APR) threshold that mandates such accounts from the current limit of 1.5 percentage points to 2.5 percentage points.


Feel free to leave comments, we are eager to hear your opinion!

Check out Jumbo, High-End Jumbo Mortgage Defaults SPIKE 600% | List Bank Foreclosures, Luxury Distressed Property | TimandJulieHarris.Com

Check out Jumbo, High-End Jumbo Mortgage Defaults SPIKE 600% | List Bank Foreclosures, Luxury Distressed Property | TimandJulieHarris.Com

Drake & Alicia Keys - Fireworks

Did you know if you click the "playlist" tag found on the bottom of this post you will have a playlist to groove out to at work, home, or on your mobile phone.

Off of Drake's highly anticipated album Thank Me Later here is "Fireworks" featuring Alicia Keys. I just felt it to be fitting with the 4th of July this weekend. Enjoy!