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Chris Sorensen's Blog

By Chris Sorensen | Real Estate Pro in California
  • August 15, 2013 FHA Waives Short Sale & Foreclosure Waiting Periods

    Posted Under: Home Buying in Los Angeles, Agent2Agent in Los Angeles, Credit Score in Los Angeles  |  August 19, 2013 6:44 AM  |  2,314 views  |  1 comment
    Read The USA HELP Blog.  A 501C-3 http://www.help.freehomeownershiphelp.org/?p=2416

    FHA has waived its 3-year foreclosure-waiting period. Mortgagee Letter 2013-26 Released August 15, 2013. The FHA Back To Work – Extenuating Circumstances program ends September 30, 2016.

    Effective for FHA Case Numbers assigned on, or after, August 15, 2013, borrowers with a recent history of bankruptcy, foreclosure, judgment, short sale, loan modification or deed-in-lieu can apply and get FHA-approved for an FHA-insured mortgage.

    If you’ve experienced any of the following financial difficulties, you may be eligible :
    Pre-foreclosure sales
    Short sales
    Deed-in-lieu
    Foreclosure
    Chapter 7 bankruptcy
    Chapter 13 bankruptcy
    Loan modification
    Forbearance agreements

    Here are some “Back To Work” FAQ’s;

    Q: Can I use the FHA Back To Work program as a first-time home buyer?
    A: Yes, you can use the FHA Back To Work program as a first-time buyer.

    Q: Can I use the FHA Back To Work program as a repeat home buyer?
    A: Yes, you can use the FHA Back To Work program as a repeat home buyer.

    Q: Does the FHA Back To Work program waive the traditional 3-year waiting period after a foreclosure, short sale, or deed-in-lieu?
    A: Yes, the FHA Back To Work program waives the agency’s three-year waiting period. You no longer need to wait three years to apply for an FHA loan after experiencing a foreclosure, short sale or deed-in-lieu.

    Q: Does the FHA Back To Work program waive the traditional 2-year waiting period after bankruptcy?
    A: Yes, the FHA Back To Work program waives the agency’s two-year waiting period. You no longer need to wait two years to apply for an FHA loan after experiencing a Chapter 7 or Chapter 13 bankruptcy.

    Q: Which types of “events” are covered by the FHA Back To Work – Extenuating Circumstances program?
    A: The FHA Back To Work – Extenuating Circumstances program can be used by anyone who’s experienced a pre-foreclosure sale, short sale, deed-in-lieu, foreclosure, Chapter 7 bankruptcy, Chapter 13 bankruptcy, loan modification; or who has entered into a forbearance agreement.

    Q: How do I apply for the FHA Back to Work – Extenuating Circumstances program?
    A: You can apply for an FHA Back to Work – Extenuating Circumstances mortgage with any FHA-approved lender. The mortgage approval process is the same for any other FHA-insured mortgage. Click here to get rates before you apply.

    Q: What are mortgage rates for the FHA Back To Work program?
    A: Mortgage rates for the FHA Back To Work program are the same as mortgage rates for any other FHA loan. There is no premium on your interest rate, nor are there additional fees to pay at closing. Your mortgage rate will be unaffected by the FHA Back To Work program.

    Q: My current lender says that it’s not participating in the program? What do I do?
    A: If your current lender is not participating in the FHA Back To Work program, you can find another lender.

    Q: What are the minimum eligibility requirements of the FHA Back To Work program?
    A: In order to qualify for the FHA Back To Work program, you must meet several minimum eligibility standards. The first is that you must have experienced an “economic event” (e.g.; pre-foreclosure sale, short sale, deed-in-lieu, foreclosure, Chapter 7 bankruptcy, Chapter 13 bankruptcy, loan modification, forbearance agreement). The second is that you must demonstrate a full recovery from the event. And, third, you must agree to complete housing counseling prior to closing. You must also show that your household income declined by 20% or more for a period of at least 6 months, which coincided with the above “economic event”.

    Q: How do I document a 20% loss of household income for the FHA?
    A: In order to document a 20% loss of household income, you must present federal tax returns or W-2s, or a written Verification of Employment evidencing prior income. For loss of income based on seasonal or part-time employment, two years of seasonal or part-time employment in the same field must be verified and documented as well. Income after the onset of the economic event, which should represent a loss of at least 20% for at least six months, should be verified according to standard FHA guidelines. This may include W-2s, pay stubs, unemployment income receipts, or other. Your lender will help you determine the best method of verification.

    Q: How do I document a “satisfactory” credit history since my “economic event” for the FHA?
    A: Your lender will review your credit report as part of the FHA Back To Work approval process. All accounts will be reviewed ones, which went delinquent, and ones, which remained current. Your lender will attempt to determine three things; that you showed good credit history prior to the economic event; that your derogatory credit occurred after the onset of the economic event; and, that you have re-established a 12-month history of perfect payment history on major accounts. Minor delinquencies are allowed on revolving accounts.

    Q: Does the “20 percent loss of income” eligibility condition apply to me only, or to everyone in the household?
    A: The “20 percent loss of income” eligibility condition applies to everyone in the household. If one member of the household lost income as the result of a job loss but the household income did not fall by 20 percent or more for a period of at least six months, the borrower will not meet the FHA “Back To Work” Extenuating Circumstances.

    Q: Is the FHA Back To Work Program limited by loan size?
    A: No, the FHA Back To Work Program is not limited by loan size. The FHA will always insure up to your area’s local FHA loan limit. Your lender, however, may not. You may need to shop around.

    Q: Is there a counseling requirement in order to use the FHA Back To Work program?
    A: Yes, in order to the use the FHA Back To Work program, you must agree to attend housing counseling.

    Q: Why do I need to take housing counseling for the FHA Back To Work program?
    A: The housing counseling required by the FHA Back To Work program will address the cause of your economic event, and help you consider actions which may prevent re occurrence.

    Q: How long is the housing counseling session I am required to take?
    A: The housing counseling required for the FHA Back To Work program will typically last one to four hours.

    Q: Do I have to take housing counseling in-person?
    A: No, you do not have to take the housing counseling in-person. Housing counseling may also be conducted by phone or via the internet.

    Q: If I complete counseling, am I automatically approved for the FHA loan?
    A: No, you are not automatically approved for the FHA loan if you complete the housing counseling required by the FHA Back To Work program. You must still qualify for the FHA mortgage based on Federal Housing Administration mortgage guidelines.

    Q: What is the minimum credit score requirement for the FHA Back To Work program?
    A: There is no minimum credit score requirement for the FHA Back To Work program, necessarily. The program follows standard FHA mortgage guidelines. Credit scores below 500 are not allowed, but borrowers with no credit score whatsoever remain eligible. The Federal Housing Administration doesn’t change mortgage rates based on credit score.

    Q: Are modified mortgages eligible for the FHA Back To Work program?
    A: Yes, modified mortgages are eligible for the FHA Back To Work program.

    Q: Are loans on a payment plan eligible for the FHA Back To Work program?
    A: Yes, loans on a payment plan are eligible for the FHA Back To Work program.

    Q: I am still in Chapter 13 bankruptcy. Do I need the court’s permission to enter into the mortgage?
    A: Yes, if your Chapter 13 bankruptcy has not been discharged prior to the date of your loan application, you must have written permission from Bankruptcy Court to enter into the purchase transaction.

    Q: When does the FHA Back To Work – Extenuating Circumstances program end?
    A: The FHA Back To Work – Extenuating Circumstances program ends September 30, 2016. Source: FHA Mortgagee Letter and Dan Green.

    http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee

  • Low FHA Rates Are Offset Due To Insurance Cost. Blame Fraud.

    Posted Under: Home Buying in Los Angeles, Financing in Los Angeles, Agent2Agent in Los Angeles  |  May 23, 2013 6:04 AM  |  1,820 views  |  No comments

    FHA Rates are at historic lows, but the benefits are muted due to the massive increases in Mortgage Insurance Premiums.

    These increases have much to do with the losses FHA suffered due to defaults from FHA loans originated by those who claimed FHA was the “new sub-prime” in 2007 through 2009.

    Loan Originators, many of whom are likely still doing loans today, would “borrow” for a fee another entity’s FHA approval and originate FHA loans. A common practice at the time was to submit said loans to FHA Underwriters paid on a bonus basis for approvals. If you are not aware, this was and is illegal. Getting caught was rare.

    As one can imagine, this put those who attempted to do business honorably at a competitive disadvantage, as loans turned down would later be approved by these individuals and companies who had little to no long-term risk associated with their actions.

    Sadly, today’s professionals and buyers are paying the price due to over-reaching regulations and dramatically increased mortgage insurance premiums.

    FHA is not a mortgage lender, nor does it “set” FHA mortgage rates. Rather, it is a government agency, which insures mortgage lenders against losses on loans meeting specific minimum standards.

    Loans that meet FHA minimum standards are eligible for FHA financing. For loans like these, banks provide mortgage rates based on the going price of a Ginnie Mae (GNMA) mortgage-backed security (MBS). A mortgage-backed security is a bond openly traded via Wall Street.

    While FHA does not and cannot set interest rates, they can and do set insurance premiums borrowers must pay.

    FHA MIP can add up to 1.55 percentage points to your “effective FHA mortgage rate”.

    The Federal Housing Administration has raised its premiums five times since 2008 in order to keep its Mutual Mortgage Insurance fund flush with cash.

    The effective FHA mortgage rate you pay is the actual FHA mortgage rate from the lender, plus the annual rate of insurance charged by the government.

    The FHA most recently raised its mortgage insurance rates April 1, 2013, lifting annual mortgage insurance premiums to as high as 1.55%. This jump offsets the effects of the lowest FHA mortgage rates in a lifetime.

    The good news is that some FHA-insured homeowners are exempted from rising MIP. Via the FHA Streamline Refinance, homeowners whose current mortgage carries an endorsement date of May 31, 2009 or earlier pay just 0.55 percent in annual MIP.

    In order to meet FHA Streamline Refinance requirements, current FHA-backed homeowners must show that :

    1.At least 6 mortgage payments have been made on your current mortgage
    2.No mortgage payments have been missed in the last 3 months
    3.There is a “net tangible benefit” to refinancing; a legitimate purpose
    For homeowners meeting FHA Streamline Refinance standards, the mortgage approval process is simpler.

    There is no appraisal required, so negative equity is not a factor. There is no verification of income, assets and employment, based on official agency guidelines, but many lenders have what is known as “overlays” or additional requirements to off set risk.  Call your lender to find out what they may be.

    All FHA-insured homeowners are eligible for the FHA Streamline Refinance — not just the “grandfathered” ones.

  • Home Ownership, The LAST Great Tax Break For The Average American

    Posted Under: Home Buying in Los Angeles, Agent2Agent in Los Angeles, Property Q&A in Los Angeles  |  February 26, 2013 6:12 AM  |  1,850 views  |  1 comment

    The following information is not to be construed as legal or tax advice. It is only the opinion of the author. All readers should consult with their own tax professional to determine their own individual tax benefits or burdens with respect to homeownership.

    Now, with that disclaimer out of the way…

    With April 15 right around the corner and many predicting this incredible ride of never before seen interests’ rates going away in the not too distant future, it is appropriate to recall the most common tax deduction homeowners have and motivate some of you fence sitters to take advantage of this market if you can.

    The U.S. tax code is designed to offer incentives to homeowners.

    Whether a home is financed via a mortgage, or paid-in-full with cash, there are a multitude of tax-savings opportunities associated with owning a home.

    Tax Deduction : Mortgage Interest Paid

    Mortgage interest paid to a lender is tax-deductible and, for some homeowners, can provide a large tax break — especially in the early years of a home loan. This is because a standard mortgage amortization schedule is front-loaded with mortgage interest.

    At today’s mortgage rates, annual interest payments on a 30-year loan term exceed annual principal payments until loan’s 10th year.
    Mortgage interest tax deductions are extended to second mortgages, too. Interest paid on refinances, home equity loans (HELOAN) and home equity lines of credit (HELOC) is tax-deductible as well. However, restrictions apply on homeowners who raise their mortgage debt beyond their property’s fair market value.

    In addition, the Internal Revenue Service (IRS) imposes a $1 million loan size cap. Loans for more than one million dollars are exempt from this tax deduction.

    Tax Deduction : Discount Points

    Discount points paid in connection with a home purchase or a refinance are also tax-deductible. By way of definition, a discount point is a one-time, at-closing fee which gets a borrower access to mortgage rates below current “market rates”.

    For example, if the market mortgage rate is 4 percent, paying 1 discount point may get you access to a mortgage rate of 3.75%. The IRS treats discount points as “prepaid mortgage interest” which, in turn, makes them tax-deductible in most cases.

    When you pay discount points in conjunction with a purchase, the points may be deducted in full in the year in which they were paid. With respect to refinances, discount points are typically amortized over the life of the loan such that 1 point is deducted at 1/30 of its value per tax-calendar year.

    There are additional qualifications to meet in order to claim discount points. Your accountant can help.

    Other Deductions : Property Taxes, Renovations, Home Office
    Real Estate Taxes

    Homeowners typically pay real estate taxes to local and state entities. These property taxes may be deducted as an expense and income in the year in which they are paid. If your mortgage lender currently escrows for your taxes and insurance, you can expect an annual statement to file along with your federal tax returns.

    Home Improvements

    For tax-paying homeowners, certain types of home improvement projects may be tax-deductible, too — specifically ones made for medical reasons. For example, if home renovations are made to accommodate a chronically ill or disabled person, and do not add to the overall value of a home, project costs are entirely tax deductible. Repairs made for aesthetic purposes are not eligible.

    Home Offices

    Homeowners who work from their residence can typically deduct expenses used for maintaining qualified home offices. These deductions include everything from renovations to the cost of utilities. However, there are several conditions for claiming home office space on your tax returns, and the rules can be tricky. Before claiming a home office, speak with an accountant to understand the benefits and potential liability.

    Homeowners : Budget For Your Tax Breaks

    Homeowner tax deductions reduce the annual costs of homeownership, but they’re far from a qualified reason to buy an actual home. Tax law can (and does) change frequently so consider whatever deductions to which you’re entitled a bonus.

    Build your housing budget with the help of a tax preparer, if you’d like. Get a feel for how much home you can afford — before and after accounting for tax breaks. And, as you build your budget, make sure to use legitimate mortgage rates. Source: Dan Green

  • HARP 3 Pilot Program? The American Homeownership Pilot Prgm.

    Posted Under: Financing in Los Angeles, Agent2Agent in Los Angeles, Property Q&A in Los Angeles  |  February 15, 2013 8:24 AM  |  2,046 views  |  2 comments
    For those who do not have loans backed by Fannie Mae or Freddie Mac and are in a negative equity position and unable to take advantage of today’s lower interest rates, this pilot program may be coming your way.

    The Rebuilding American Homeownership Pilot Program (RAHPP) is a pilot program proposed by US Senator Jeff Merkley from Orego...n.

    HARP was originally thought to be able to help upwards of seven million homeowners refinance, but to date, only two million have benefitted and HARP is due to expire at the end of this year.

    Under the pilot program – RAHPP -eligible homeowners would be able refinance with far easier qualifications than a normal refinance. Further, the loan would NOT have to be backed by Fannie or Freddie, NOR would it have to have been originated prior to May 31, 2009.

    The launch date of this pilot program, which will ONLY be available in Multnomah County, Oregon, begins April 1, 2013
    The main qualifications for this test program are:
    •Your home must be "significantly" underwater
    •You must intend to stay in your home for at least 5 years
    •You must not own any other residential property
    •You must be current on your mortgage

    Homeowners will be offered a choice of two mortgage products from which to choose; a 30-year fixed rate mortgage at 5% or a 15-year fixed rate mortgage at 4%.

    Homeowners with negatively-amortizing Option ARMs and sub-prime-like loans are eligible, as are homeowners with 30-year fixed rate loans.

    Let’s hope this program is successful and will be the precursor of a more robust program for underwater borrowers who have been paying on time, but have been unable to refinance out of their negatively amortizing loan, or other programs that are not backed by Fannie Mae or Freddie Mac.

  • Eminent Domain And The Hypocrisy Of The Financial Industry’s Objections

    Posted Under: Market Conditions in Los Angeles, Financing in Los Angeles, Agent2Agent in Los Angeles  |  June 30, 2012 9:21 AM  |  1,465 views  |  No comments

    I read the following open letter to elected officials and those who advise them and felt compelled to offer a retort;

    To: The Honorable Josie Gonzales, Chair, San Bernardino County Board of Supervisors
    The Honorable Brad Mitzelfelt, Vice-Chairman, San Bernardino County Board of Supervisors
    The Honorable Janice Rutherford, Supervisor
    The Honorable Neil Derry, Supervisor The Honorable Gary Ovitt, Supervisor

    From: American Bankers Association
    American Council of Life Insurers
    American Land Title Association
    American Securitization Forum
    Association of Mortgage Investors
    California Bankers Association
    California Land Title Association
    California Mortgage Bankers Association
    Community Mortgage Banking Project
    Consumer Mortgage Coalition
    Inland Valleys Association of REALTORS
    Investment Company Institute
    Mortgage Bankers Association
    National Association of Home Builders
    Residential Servicing Coalition
    Securities Industry and Financial Markets Association
    The Financial Services Roundtable
    The Housing Policy Council of the Financial Services Roundtable

    RE: Joint Exercise of Powers Agreement
    The eighteen organizations listed above write this letter to express our strong objection to the Joint Powers Agreement (the “Agreement”) that contemplates the implementation of a so-called

    “Homeownership Protection Plan.” Based on publicly available information on the Agreement, we are very concerned that the good intentions of the Board of Supervisors will instead result in significant harm to the residents the Agreement intends to help.
    The Agreement proposes the use of eminent domain to seize mortgage loans from private investors through condemnation, in order to force a restructuring of the mortgage. We believe that the contemplated use of eminent domain raises very serious legal and constitutional issues. It would also be immensely destructive to US mortgage markets by undermining the sanctity of the contractual relationship between a borrower and creditor, and similarly undermining existing securitization transactions. Such an action would likely significantly reduce access to credit for mortgage borrowers in the San Bernardino area and other areas that undertake similar actions.
    We expect that credit availability for home purchases and refinancing of all San Bernardino loans would be significantly compromised if this plan would be put into effect. This impact would be borne by those very homeowners and communities that the proponents of this plan claim they are trying to help. If eminent domain were used to seize loans, investors in these loans through mortgage-backed securities or their investment portfolio would suffer immediate losses and likely be reluctant to provide future funding to borrowers in these areas. It is essential to remember that investors in mortgage-backed securities channel the retirement and other savings of everyday citizens through their investment funds. This program may cause loans to be excluded from securitizations, and some portfolio lenders could withdraw from these markets. In other words, this program could actually serve to further depress housing values in the county by restricting the flow of credit to home buyers.
    The above represents our initial observations based upon the publicly available information on the proposal. We are aware that additional information is being selectively shared on a non-public basis, which concerns us and limits our ability to comment fully on the program. We recognize the County’s intention to assist homeowners who are facing financial difficulties, but inappropriately, and possibly unconstitutionally, using the power of eminent domain to abrogate a contractual agreement between borrower and creditor would have far greater and lasting negative effects on existing and future homeowners.
    Please do not hesitate to contact any of our organizations for more information or further discussion.
    Thank you.
    cc: Mr. Jean-Rene Basle, County Counsel
    Mr. Gregory C. Devereaux, Chief Executive Officer, County of San Bernardino

    I have something to say about the above letter;

    To:
    American Bankers Association
    American Council of Life Insurers
    American Land Title Association
    American Securitization Forum
    Association of Mortgage Investors
    California Bankers Association
    California Land Title Association
    California Mortgage Bankers Association
    Community Mortgage Banking Project
    Consumer Mortgage Coalition
    Inland Valleys Association of REALTORS
    Investment Company Institute
    Mortgage Bankers Association
    National Association of Home Builders
    Residential Servicing Coalition
    Securities Industry and Financial Markets Association
    The Financial Services Roundtable
    The Housing Policy Council of the Financial Services Roundtable

    From:
    Chris Sorensen
    RE: Joint Exercise of Powers Agreement – “Homeownership Protection Plan.”

    I find it shocking that all of these organizations were able to come together so quickly on a topic that has only recently surfaced. That is amazing in light of the fact that these very groups have been lamenting for years that the industry and the problems that surround it are so vast and they are so overwhelmed that they can’t return calls to their own mothers let alone the borrowers requesting assistance. This gives me hope.

    Let’s focus on San Bernardino for the moment.

    The very industries that appear to be concerned about “doing what is right” today seem to be only recently aware of this concept. Where was the call to action when many in this group where creating and securitizing specialized investment vehicles consisting of collateralized debt obligations which had multiple tranches consisting of over leveraged bonds? These bonds I refer to, that turned out to be leveraged on average 32 to 1 (See; FCIC.Gov). These bonds that were created through an incestuous relationship that will go down in written history as the greatest robbery in mankind is what we now wish to protect over a few individual San Bernardino homeowners? Is that what I’m to understand?

    True, many of the investors of these bonds are life insurance companies, pensions, public retirement plans etc. But, all who benefitted in the run up in real estate values must today accept the fact that this was all predicated on one thing; providing loans to those who based on historical metrics did not qualify. We moved US Homeownership from 64% where it hovered for almost four decades to 69.9% in less than six years. In retrospect we should all be embarrassed at how obvious all this is.

    By pushing loans to those who never qualified, they created demand that should not have been available, thus creating an economic climate that was akin to the euphoria a crack user experiences and now we’re having to deal with the lows that come from withdrawals once there is no more crack to be found.

    It is disingenuous for the crack dealer to send letters extolling the virtues of “just say no” when they created the drug, they sold the drug, they promoted drug dealers and paid them handsomely to push, cold call, send mailers, door knock and do whatever they could to get more non qualifying borrowers to borrow so they could make more money selling the securities.

    We all made money. It was great. But at what cost?

    My beloved industry, the industry that has served me well for over two decades, participated in the run up in values and we witnessed larger and larger commissions based on loans that we had trouble justifying in our own heads. We knew something was wrong but rationalized that if we didn’t participate, at least on a limited basis, we’d be out. Done. Finished. And so we participated and approved borrowers that ten years earlier could not have financed a Fiat let alone a $400k home in San Bernardino.

    We drove values up 100-200-300% and now we have the audacity to threaten redlining if those who are elected to serve the public’s best interest investigate possible solutions for their constituents’ who the vast majority, DID NOTHING WRONG. They are truly victims of circumstances beyond their ability and control. They had no idea to the extent their neighborhood was being whored out. They had no idea that every fourth or fifth borrower, or more, had no business buying the home across the street driving up home values beyond anything we have ever witnessed in our lifetimes.

    In 2007 had they read the expert opinions, many of them holding Doctorates in Economics from very prestigious schools and employed by the hypocrites lamenting about the perils of helping homeowners today, they would have discovered virtually universal sentiment that while values may not go up with the same voracity of the last six or seven years, values will most certainly continue to rise. Based on tax benefits and the fact they are not making any more land and other garbage, the experts spewed their bought and paid for rhetoric and we ate it up.

    I don’t expect those who supposedly all got together and discussed this program to stand behind it and applaud it, but I do expect them to sit silently in shame while those of us who are left to clean up the mess attempt to do so.

    I along with many who may read my words lost more than I could afford to, due to my belief that those in charge of the markets where not stupid, arrogant, greedy, numskulls who had no idea how to control the tiger they had by the tail. I lost not only the return on my investment; I lost my investment and much more. But, I am still better off than most.

    I will not stand idly by while threats of redlining San Bernardino in the future for simply answering a call to action from their constituents are contemplated. That is reprehensible behavior and I am ashamed at my industry for participating in this hollow threat.

    Come up with a solution. Don’t offer a complaint about one. That is simply too easy and childish.

    Perhaps I’ve cried with too many grown men who have lost everything they have worked for, over forty, fifty years. Maybe I’ve read about one too many suicides by those who have lost their way due to this financial crisis. And maybe I am going through my own Jerry McGuire moment since 2008 after losing my father and wondering how we can be so callous as to implore elected officials to be concerned about a rate on return for investors when they have constituents who can’t buy food if they’re going to make their mortgage payment.

    I have no doubt based on today’s underwriting criteria and the fact that investors are searching the planet for a decent ROI that money will be available for San Bernardino borrowers in the future. I’d stake everything on it.

    In closing I would humbly submit that we allow those involved with exploring eminent domain or any other means to assist select borrowers the opportunity to do so and offer our collective expertise on how this might be done in a fair and balanced manner.

    I suggest that if a borrower lied via a stated income loan and they cannot support the income they stated back when they acquired the property that they don’t qualify for relief. In fact, if you lied about anything in the acquisition of your home you should not qualify for relief. If you cannot afford your home, short sell and move on.

    I suggest validation of a documentable hardship beyond one’s ability and control which has been the underwriting standard for decades be applied when considering using the extreme tool of eminent domain. This can and should be a pilot program and I raise my hand to offer assistance to those who have the difficult task of “splitting the baby”(Kings 3:5-14).

    I ask all those who wrote this letter to reconsider their position and join me in assisting our elected officials and those who advise them in coming up with solutions and never again threaten redlining as we do not need the Black and Hispanics of San Bernardino to once again be subjected to that which The Fair Housing Act of 1968 and The Community Reinvestment Act of 1977 did away with.

    Money wants to make money and will go anywhere it can do so. It will not discriminate. Only man can do that.

  • All Welcome! Free Class! Professionals, Learn How To Get More Clients Now!

    Posted Under: General Area in Los Angeles, Agent2Agent in Los Angeles, Property Q&A in Los Angeles  |  June 1, 2012 3:01 PM  |  2,200 views  |  No comments

    Learn how to do more business, and better business, in this challenging economy. Set yourself apart by learning from an industry expert, author, HUD and IRS recognized housing consultant.

    Learn how to:

    - Work effectively with NID and HUD approved housing counseling agencies.

    - Help clients make strategic decisions to short sale sooner rather than later.

    - Find the best resources for your clients: Resources most consumers don’t even know exist.

    - Develop a team that will make your business more effective and more efficient.

    - Tap into a network of professional services, resources and discounts that will improve how you do business.

    - Reinvigorate your career with a fresh perspective on why you are needed.

    The education is free. Those who wish to be part of the H.E.L.P. Certification Program will be able to do so at a discounted rate at the class. The Certification program is designed to help you heal communities – and the economy – by promoting responsible business practices and ethical standards in the real estate industry.

    H.E.L.P. is the Homeownership Education Learning Program based in Riverside County, California. H.E.L.P. is a Private Education Center with the CA Department of Real Estate, sponsor #4987, designed to teach real estate related financial education to consumers and professionals.

    Founder Chris Sorensen, author of the book “Financial Sense to White Picket Fence” is endorsed by the CA DRE, CA Community College Real Estate Education Department, and County of Riverside. He is a regular speaker on KNX 1070, CBS KROG, and CBS “Money 101 with Bob MCormick on KFWB.” He is listed as a resource with the IRS, and is a trainer for Housing Counseling Agencies nationwide.

    Join us at one of 3 free training events sponsored by Kinecta Federal Credit Union.

    Tuesday, June 5, 2012

    8:30am to 5:30pm

    Manhattan Beach Marriott Hotel

    1400 Parkview Avenue, Manhattan Beach, CA 90266

    RSVP: 855-444-9823

    E-mail: rsvprealtor [at] kinecta [dot] org

    Tuesday, June 12, 2012

    8:30am to 5:30pm

    The Balboa Bay Club and Resort

    221 West Coast Highway, Newport Beach, CA 92663

    RSVP: 855-444-9823

    E-mail: rsvprealtor [at] kinecta [dot] org

    Tuesday, June 19, 2012

    8:30am to 5:30pm

    DoubleTree by Hilton, San Diego/Mission Valley

    7450 Hazard Center Drive, San Diego, CA 92108

    RSVP: 855-444-9823

    E-mail: rsvprealtor [at] kinecta [dot] org

    Please include in your RSVP:

    1. Which location you would like to attend

    2. How you were referred

    We look forward to seeing you there!

  • HARP 3.0 (Responsible Homeowner Refi Act of 2012 ) Supported By NAR

    Posted Under: Financing in Los Angeles, Agent2Agent in Los Angeles, Property Q&A in Los Angeles  |  May 25, 2012 6:44 AM  |  1,627 views  |  No comments

    May 24, 2012: NAR releases Press Release in support of HARP 3. But fails to even acknowledge investors!!!

    I may sound like I pick on NAR, I don’t mean to, but for all their millions of dollars in resources one would think they could hire a speech writer so their Presidents can sound well versed instead of possessing a myopic perspective.

    The part I like A LOT;

    “Eliminating the refinancing barriers homeowners face with Fannie Mae and Freddie Mac loans will help bring them relief by lowering monthly payments and reducing the risk of default.”

    But, without acknowledging the losses to investors who purchased mortgage backed securities and are required to create budget projections for existing pensions and retirements for cities, states and the Fed based on a certain cash flow, makes the industry look, well, selfish once again.

    At the very least, one must clearly present to a Congressman and Senator a well prepared analysis based upon empirical evidence what the losses to investors have been, currently are and are projected to be, based on negative equity and zero relief as well as the actual and projected defaults. Then, compare and contrast those loses, both actual and projected, with the loss in income due to reduced cash flows by allowing an increase in refinancing and the projected impact this might have on the overall economy and the citizens in their districts.

    Mark Zandi, chief economist for Moody’s Analytics projects loses of over 6.5 Billion to institutional investors if HARP 3 is passed. This will have a major impact on other areas of our economy. Am I against this course of action? Not necessarily. But if I was an elected leader and I heard testimony from an industry representative lacking substance, I would summarily dismiss it as yet another special interest group concerned about their interest above all others.

    The NAR Press Release;
    http://www.realtor.org/news-releases/2012/05/realtors-offer-support-for-bill-to-help-responsible-homeowners-refinance

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