Know Your Options – Fannie Mae

Fannie Mae Foreclosure HelpThese days you have to know your options. If your buying a home you have to know your options. If your selling your home, you need to know your options. If you are trying to loan mod or short sale, well you know the answer. Know your options!

Luckily Fannie Mae has created a web site that answers a lot of questions if you have a Fannie Mae loan. They will explain options to stay in your home or options to leave your home. They also offer in person or telephone support to answer your questions.

So your probably thinking, “Do I have a Fannie Mae loan?” Well here’s how you can find out. Go to Fannie Mae Lookup: www.fanniemae.com/loanlookup and see if your mortgage is owned by Fannie Mae. All you do is input your address and answer a couple of questions and it will tell you on the spot if you have a Fannie Mae loan.

Next thing you want to do is is visit Know Your Options: www.knowyouroptions.com by Fannie Mae and read all the valuable information on how they can help you resolve your issue.

If you have questions, contact us. We’re here to help.

 

Where Are Home Prices Heading?

Housing Prices – Are They Going Up, Down or All Around

One of the biggest questions I get asked is where are home prices headed. It seems like everyone has a different answer according to what they saw on TV, read in the paper or heard from their friends or family. I cannot say exactly where we will be later this year but one thing is most likely, prices overall will drop. This is caused by a continued upswing in foreclosure bound properties like short sales. Short sales will be the leader in housing inventory uptick. Bank owned properties will stay steady as will standard sales, those real estate sales with equity. Although standard sales will thin out as more and more equity sellers move and are replaced by non or little equity buyers becoming homeowners.  But here’s the kicker. If we can sift through and drop the number of foreclosures bound properties, this will normalize the market and keep prices at current levels.

This is a great article published today from the Housing Matrix.

The National Association of Realtors (NAR) reported that the number of signed purchase contracts for existing homes rose. Their index rose 3.5% in November. Even though the index remains 5.0% below its November 2009 The NAR’s Pending Home Sales Index took a steep dive following the expiration of the homebuyer tax credit in April.

Post-Tax Break Bounce Back

This is a sign that housing is regaining its health, even though the index remains 5.0% below its November 2009 measurement. This indicates that home sales are recovering without direct government stimulus. The NRA describes it as “a gradual recovery into 2011.”
The West posted the largest month-over-month jump of 18.2 percent, which is 0.4 percent above November 2009. The Northeast reported gains of 1.8 percent from a year earlier but is still 4.2 percent down from October. The South fell 1.8 percent while the Midwest declined 4.2 percent from October, according to the NAR.

What Caused the Increase?

Lawrence Yun, NAR chief economists, attributes this gain to an improvement in increased housing affordability, and overall economic improvements.

Will the Gain Continue?

“Further gains are needed to reach normal levels of sales activity…All the indicator trends are pointing to a gradual housing recover…Home price prospects will vary depending largely upon local job market conditions,” says Yun.

Looking Forward: How Will Home Prices Fair?

“The national median home price, however, is expected to remain very stable even with a continuing flow of distressed properties coming onto the market, as long as there is a steady demand of financially healthy home buyers…As we gradually work off the excess housing inventory, supply levels will eventually come more in-line with historic averages, and could allow home prices to rise modestly in the range of 2 to 3 percent in 2012,” according to Yun.

See How Many Foreclosures Are On Your Street

Map of Foreclosures for Hacienda Heights  La Habra Heights  La Habra

Maybe you are just curious or need to make an important decision on whether to go forward with a loan modification or short sale. Here you see the amount of properties that are in some sort of the foreclosure process.

As of 1-10-2011, Hacienda Heights has a total of 341 properties in some sort of foreclosure. 115 are in pre-foreclosures, meaning that they have missed at least 3 months worth of payments and their lender has issued a Notice of Default, NOD.From this point, the borrower has at least 90 days to became current or come to some arraignment with the lender to make payments, modify the loan or sell the property on their own, most likely a short sale.

201 are scheduled for auction. At this point the borrower has not made payments or a successful arraignment with the lender and the 90 days since the notice of default has passed. The lender has issued a Notice of sale, NOS. This document will state the property will be up for sale at auction on a certain date.As of 1-10-2011, the properties listed for auction have a sale date pending in less than 4 weeks.

25 are bank owned. The lender was not able to sell the property at auction and the home has reverted back to the lender. At this point the lender will put the home for sale as a bank owned home.

In La Habra Heights, as of 1-10-2011,  there are a total of 44 properties in some sort of foreclosure. 16 are Notice of Default, NOD, Pre-foreclosure properties.  25 are scheduled for auction within the next 4 weeks and 3 are bank owned.

In the city of La Habra, as of 1-10-2011, there are a total of 357 properties in some sort of foreclosure. 124 are Notice of Default, NOD, Pre-foreclosure properties. 192 are scheduled for auction within the next 4 weeks and 41 are bank owned.

This map does not include any homeowners that are late on their mortgage payments and have not received a notice of default, NOD. This is estimated to be at least 25% of homeowners.

 

If you would like a more detailed area or list of foreclosures in your interested area or have any questions, contact us. We are more than happy to assist you.

We take pride in provide the most current accurate information to the community. Let’s get together and discuss your possibilities.

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High-End Homeowners Falling Into Foreclosure Trap

High-End Homeowners Falling Into Foreclosure Trap

Heated pools, ocean views and media rooms are not what most people would expect to find in a foreclosed property, but more high-end homes—priced over a million dollars—have been falling into the hands of banks this year.


This foreclosed home in Fort Mill, S.C. is currently listed at $1.148 million.
Foreclosures of homes worth over $1 million began increasing at the end of 2009, according to exclusive data provided by foreclosure tracking website RealtyTrac. Foreclosures reached a high in February 2010, the last month data is available, when 4,169 homes were somewhere in the foreclosure process; either having received a foreclosure notice, had an auction scheduled or the lender took ownership of the property. That’s a 121 percent increase from a year ago.

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California Approves Tax Forgiveness on Short Sales

Leading the Way…® in Real Estate Law

NO MORE STATE TAX ON FORGIVEN DEBT

“Qualified principal residence” indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence.  It includes both first and second trust deeds.  It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified.

The tax breaks apply to debts discharged from 2009 through 2012.  Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.

Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions.  Most notably, taxpayers who are bankrupt are exempt from debt relief income tax.  Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.

For more information about mortgage forgiveness tax consequences, go to California Franchise Tax Board’s Mortgage Forgiveness Debt Relief Extended webpage and the Internal Revenue Service’s Mortgage Forgiveness Debt Relief Act and Debt Cancellation webpage.  The full text of Senate Bill 401 is available at www.leginfo.ca.gov.

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More Homeowners Walk Away From Their Homes

In 2006, Benjamin Koellmann bought a condominium in Miami Beach. By his calculation, it will be about the year 2025 before he can sell his modest home for what he paid. Or maybe 2040.

“People like me are beginning to feel like suckers,” Mr. Koellmann said. “Why not let it go in default and rent a better place for less?”

After three years of plunging real estate values, after the bailouts of the bankers and the revival of their million-dollar bonuses, after the Obama administration’s loan modification plan raised the expectations of many but satisfied only a few, a large group of distressed homeowners is wondering the same thing.

New research suggests that when a home’s value falls below 75 percent of the amount owed on the mortgage, the owner starts to think hard about walking away, even if he or she has the money to keep paying.

In a situation without precedent in the modern era, millions of Americans are in this bleak position. Whether, or how, to help them is one of the biggest questions the Obama administration confronts as it seeks a housing policy that would contribute to the economic recovery.

“We haven’t yet found a way of dealing with this that would, we think, be practical on a large scale,” the assistant Treasury secretary for financial stability, Herbert M. Allison Jr., said in a recent briefing.

The number of Americans who owed more than their homes were worth was virtually nil when the real estate collapse began in mid-2006, but by the third quarter of 2009, an estimated 4.5 million homeowners had reached the critical threshold, with their home’s value dropping below 75 percent of the mortgage balance.

They are stretched, aggrieved and restless. With figures released last week showing that the real estate market was stalling again, their numbers are now projected to climb to a peak of 5.1 million by June — about 10 percent of all Americans with mortgages.

“We’re now at the point of maximum vulnerability,” said Sam Khater, a senior economist with First American CoreLogic, the firm that conducted the recent research. “People’s emotional attachment to their property is melting into the air.”