A  new set of consumer-protection rules take effect July 30, including requiring lenders to provide consumers with initial disclosures of the estimated mortgage costs within three business days of the loan application; prohibiting lenders from collecting any fees prior to the consumer receiving the loan-cost disclosures; and prohibiting quickie closings on loans.Traditionally, many mortgage brokers and lenders collected fees covering appraisal, credit, and other charges at the time of application.  The new rules eliminate this practice and prohibit lenders from collecting any fees until the consumer has received the truth-in-lending disclosures and an annual percentage rate (APR) calculation of the loan costs.

The new rules also require lenders to deliver a copy of the real estate appraisal to the home buyer three business days before the scheduled closing on the loan.  Previously, federal regulations guaranteed that consumers could request and obtain a copy of the appraisal, but many home buyers were not aware of this right.

Additionally, the rules prohibit quickie closings on loans by requiring a seven-day waiting period after applicants are handed their early disclosures or the disclosures are mailed.  This provides applicants a week to think about the transaction and to decide whether it is right for them.  Final truth-in-lending disclosures are due three business days before closing.

To read the full story, please click here:

http://www.latimes.com/classified/_realestate/news/la-fi-harney19-2009jul19,0,1179820.story

Check out the video as Keller Williams Realty Launches Commercial Division

Contact Jenni Abney for more information.

FREDDIE MAC OFFICIALLY LAUNCHES REO RENTAL

INICIATIVE AFTER FORECLOSURE

Freddie Mac Continues Suspension of Evictions Through April 1, 2009

McLean, VA – Freddie Mac (NYSE: FRE) today announced the official launch of its new REO Rental Initiative giving qualified tenants and former owners the option to lease their recently foreclosed properties on a month-to-month basis. The REO Rental Initiative will be managed by HomeSteps®, Freddie Mac’s national real estate unit, and implemented through several national property management firms.

Freddie Mac also announced it will continue to suspend all eviction actions until April 1, 2009 to ensure there is ample time for current occupants to learn about the options available to them under the new initiative.

“Freddie Mac’s REO Rental Initiative can help ease a foreclosure’s impact by giving renters and former owners more time to determine what options are best for them and their families. At the same time, the REO Rental Initiative helps stabilize property values and local communities by keeping homes occupied and less vulnerable to vandalism,” said Ingrid Beckles, Senior Vice President, Default Asset Management at Freddie Mac.

Starting today the property management firms will begin the process of contacting occupants of foreclosed properties to determine their interest in staying in the home and their eligibility for a month-to-month lease. Occupants will be contacted only after the foreclosure gives Freddie Mac the legal authority to offer a lease.

To qualify for a lease, the tenant or former owner must occupy the property and show they have adequate income to pay the monthly rental amount established by the property management company based on market rents for the area in which the home is located. Occupants must agree to allow HomeSteps to show the home to potential buyers as it will be marketed for sale during the lease period.

Additionally the home must be in safe, habitable condition and meet all local codes for rental properties to qualify for the REO Rental Initiative.

If an occupant does not wish to lease the property, Freddie Mac will continue its current practice of offering relocation assistance. In addition, Freddie Mac will also explore available workout options with owner-occupants after Freddie Mac gains title to the property through foreclosure.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

article taken out of the Freddie Mac webside

I recently stumbled upon a website called http://www.frugaldad.com/.   There was an article that was originally titled, “75 Tips to Survive a Recession,” but since there is still some dispute from economists on whether or not we are actually in recession, the author just stuck with the phrase, “down economy.” Regardless of how economists refer to it, people are hurting, financially. $4.00+ a gallon gasoline, rising food prices, declining home values, and a deflating dollar are combining to make it tough to stick to a budget.

These were some of his great ideas on how his family is coping:

1. Switch to cloth napkins. I’m not sure why it took a down economy for this one to dawn on me, but cloth napkins are a great alternative to paper napkins, which increase waste and add to our non-food budget.
2. Just say no to social events, or agree to meet after dinner. Peer pressure can wreak havoc on your financial plans. It’s never fun to turn down a chance to go out with friends, but there are ways to say yes without spending a fortune.
3. Scale back the cable. We’ve been living the last six months with only basic cable, and don’t miss any of the expanded cable channel offerings. Cable bill went down from $40 to $12 with this move alone.
4. Look for a value internet package. While I was scaling back on cable service I asked our cable provider for a cheaper rate on internet service. They told me about a little-advertised “value package” which costs half the normal monthly rate for reduced speed. Since I mostly surf the web and check email I barely notice, but I saved about $20 a month on our internet service.
5. Hang up the land line telephone. If most of your calls are to other cell users in the same network, consider canceling the land line and using a cell phone exclusively.
6. Have a no-spend weekend. Sometimes it takes a break in the routine to get spending under control. Try to go an entire weekend without eating out, shopping, or ordering something online. It won’t solve all your spending problems, but it’s a start.
7. Carpool a few times a week. Take turns carpooling with a coworker, especially if they live close to you. Pick them up and take them home this week, and next week allow them to return the favor. You’ll both cut your driving time in half.
8. Check your vehicle’s tire pressure each time you fill up. Things like under-inflated tires and dirty air filters can reduce your gas mileage. Pick up an inexpensive tire gauge and check the pressure while filling up.
9. Change your driving habits to save on gas expenses. Cut out “jackrabbit” starts and heavy braking.
10. Do not buy new cars - Buy a used car, and drive it until the wheels fall off. My grandfather has driven two vehicles in 34 years! Sam Walton drove a twenty year-old pickup truck right up until the time he died. Don’t tell me it can’t be done. Remember, a new car is “used” the minute you drive it off the showroom floor.
11. Consolidate errands into one trip. If you have to get out try to consolidate all of your errands into one trip away from home, instead of driving back and forth several times from store to home.
12. Ride a bike for short commutes. I’m fortunate to live about 5 miles from my employer, so I occasionally commute by bike. If you happen to live close to stores, consider riding a bike for small errands. Take along a backpack, or put some panniers on your bike to carry things back home.
13. Unload the trunk, and remove unused cargo racks. Added weight in the trunk reduces gas mileage, as does the added wind drag from an unused cargo rack.
14. Wash your own car. Our town has one of those automated car washes and for $9.00 you can get “the works.” Essentially, it is a wash, wax and application of tire shine. I’m pretty sure I can do it for less. Better yet, employ the kids and let them earn a little extra money this summer.
15. Bank “found” money in a separate account. With any income above your normal earnings, bank the amount in a separate checking or savings account and use the money to pay down debt, build up savings, or offset increased expenses. Overtime, tax refunds (and stimulus checks), gifts and similar windfalls belong here.
16. Eat like a kid again. Eat off the same plates your kids eat off, which will force you to eat smaller portions. Your wallet and your waistline will thank you.
17. Drink tap water. I don’t have the inclination to run a cost comparison between an ounce of Coca Cola and an ounce of tap water, but I’m fairly confident tap water is infinitely cheaper.
18. Eat less meat. I’m about as far from vegetarian as you can get, but I recognize that my carnivorous habits cost me big at the grocery store. We’ve recently started having breakfast for dinner (eggs instead of meat), and substituting things like pinto beans (a great source of non-meat protein) in meals instead of meats.
19. Look for manager meat specials. When you do buy meat, check the manager’s specials area for meat that is about to pass the “sell by” date. The meat is still perfectly good, but freeze it immediately if you don’t plan on cooking within the next day or two.
20. Look for a used freezer to stock up on meat specials. Many times people relocating can’t take the extra chest freezer with them and advertise it on Craigslist or the local newspaper. If you can find a good used one stock it full of manager meat specials to reduce your food budget.
21. Don’t be afraid to buy generic. Forget brand loyalty when trying to save money. When we buy ketchup, we look for the lowest unit price, regardless of brand. Same with other foods and household supplies. There are a few exceptions, but for the most part generic items are just as good as name brands.
22. When in the store, look high and low for deals, literally. Marketers know that eye-level is the place most people tend to shop, so they put the items with the highest margins right in front of you. Better deals are usually found on lower shelves.
23. Cherry-pick coupon deals. Combine coupons with store sales to maximize savings. Our local Kroger store recently had mayonnaise 2/$4. We found a coupon for $0.50/1 that doubled to $1.00, so we picked up a mayo for $1.00. Don’t use a coupon to buy something you don’t need.
24. Supplement pet food with meat scraps. Quality dog food is expensive. To make ours last a little longer we occasionally skip the dog food and give our dog meat scraps. Avoid meats with sauces or spices as it can upset their stomach, and be sure to remove any bones. Plain beef, chicken and turkey make for a great treat for our dog.
25. Water down juices. When we open a new apple juice for our kids we pour up half in the old container and add about 1/4 - 1/2 container of water to each bottle. This makes each new bottle last a little longer, and dilutes the grams of sugar and calories per serving.

First-time home buyers dominated second quarter home sales

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California has passed some new legislation that is designed to help ease some of the problems associated with the Foreclosure crisis currently underway in the state.

 Here are some highlights of the new laws that are set to take effect soon:

 Contact Between Lender and Borrower: Effective on or about September 8, 2008, a lender, trustee, or authorized agent may not file a notice of default until 30 days after contacting a borrower to assess the borrower’s financial situation and explore options for avoiding foreclosure. A lender must generally contact the borrower in person or by telephone, or satisfy due diligence requirements for contacting a borrower. During the initial contact, the lender must inform the borrower of the right to request a meeting with the lender within 14 days. The lender must also give the borrower the toll-free number for finding a HUD-certified housing counseling agency. A subsequent notice of default must include the lender’s declaration that it has contacted the borrower, tried with due diligence to contact the borrower, or the borrower has surrendered the property. A lender who had already filed a notice of default before the enactment of this law must include a similar declaration in the notice of sale. This requirement to contact borrowers applies to loans secured by owner-occupied residences made from 2003 to 2007. Certain exemptions apply if the borrower has filed for bankruptcy, surrendered the property, or contracted with a 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.

- Maintenance of Vacant Properties: Effective July 8, 2008, anyone who acquires property through foreclosure must maintain the exterior of vacant residential property. Violations of this law include permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action against trespassers or squatters, failing to take action to prevent mosquitoes from breeding in standing water, or other public nuisances. This law authorizes a governmental entity to impose a civil fine up to $1,000 per day for any violation, as long as the owner has been given notice and an opportunity to remedy the violation. A violator must be given at least 14 days to begin, and 30 days to complete, such remediation before a fine can be assessed.

- 60-Day Notice to Terminate Tenants: Effective July 8, 2008, a tenant or subtenant in possession of a rental housing unit that has been sold through foreclosure is generally entitled to a 60-day written notice to quit, not just 30 days. However, a borrower who remains on the property after foreclosure may be served a three-day notice to terminate. This law does not affect, among other things, rent-controlled properties with just-cause evictions. Effective on or about September 8, 2008, the lender, trustee, or authorized agent posting a notice of sale must also post and mail a specified notice of a tenant’s right to a 60-day eviction notice from the new owner, unless other laws apply. This requirement to notify tenants of their rights applies to loans secured by residential real property where the borrower has a different billing address than the property address.

Without a doubt there will be more changes on the horizon and paing close attention is going to be a must for anyone involved in the real estate industry.

Buyers…did you know that many builders out there are really desperate to get rid of existing inventory for new homes?  If you are working with a realtor, you can take your realtor with you to the new homes.  Many developers will compensate your realtor for even bringing you there.  Not all will, but if you have been working with an agent, it would be nice if they got paid as well for all their efforts in finding you a home.  And, it certainly does not cost you a dime.  If your agent has been driving you around with the high price of gas, they deserve to get paid. 

So, if you bring your agent with you, ask them to help negotiate a better price off of what the developer is asking.  Many times, you will be able to save a large amount of money by doing so.  This way it is a win-win for everyone, you, the developer and your agent.  If you have any questions or are looking for brand new homes in Rancho Cucamonga, Fontana, Corona, Murrieta, Temecula, Claremont, or any place in the Inland Empire, you can give me a call at 951-204-1864 and I will be happy to help make sure you get the best deal out there!

Thanks!

Joan Patterson, B.A., A.S.P., G.R.I., Realtor

Keller Williams Realty

visit my website: http://www.calljoan4homes.com

Get your Real Estate License

homesecurity-neighborhood-watch.pdf  Neighborhood Watch Home Security Checklist

I am sure that many of you are seeing a lot of short sales out there right now.  Let me give you a bit of a better understanding as to what a short sale is.  A short sale basically is what a seller does when he/she, they are having a hard time making payments.  They have to “prove” to the bank that they are unable to make the payments anymore.  It is to the bank’s advantage to take the sale of the house a bit short of what is owned, rather than to undergo the hassles of a foreclosure. 

Short sales can be fabulous deals for buyers, and they will hurt the seller’s credit by 80-160 FICO points.  It is better than up to 300 FICO points for a foreclosure.  However, both have ramifications on the seller’s credit.  The other factor that a buyer needs to remember is the fact that just because a seller agrees on a price that a buyer has given, that price must also be agreed upon by the bank.  Buyers can wait and wait and have the bank say that they won’t do the deal.  It seems crazy, but it is true.  I have recently encountered a couple that I am representing in a short sale and it has been 3 months and we have still not heard back from the bank.  They have so many short sales right now and foreclosures and truly are bogged down with many of the negotiators having 500 files on their desks.  They simply cannot get to everything because the keep getting more and more short sales every day!

If you happen to have a seller that is working with an agent that really has short sale experience, you may be able to really get a great deal if you have a lot of time and patience.  Remember, the bank can say no, so don’t get discouraged.  You can get a great deal, but just know the facts going into a short sale.  Good luck to you!  If you have any questions, you may give me a call at 951-204-1864 or please visit my web site www.calljoan4homes.com

Facing Foreclosure? Here’s where to get help!

Have you have suddenly found yourself in a situation where you can no longer afford to make your mortgage payments? Maybe you’ve lost your job, your monthly payment went way up, or you see it coming and want to be prepared. By seeking information, you’ve already taken the first step to find a solution. What you can do depends on your unique situation. Learn how to avoid falling into scams, know all your options, and make right decision for you and your family by arming yourself with information and resources. Below is a list of some organizations you can trust to assist you.

Aprenda Como Evitar la Ejecución Hipotecaria. Aquí Puede Conseguir Ayuda:

Si usted tiene dificultades con pagar su hipoteca no esta solo. Talvez perdió su trabajo, subió su pago mensual, o por alguna razón anticipa tener problemas. Al estar aquí, ya tomo el primer paso. Es importante hablar con expertos que lo pueden ayudar a encontrar la mejor solución para usted y su familia. Aquí encontrara una lista de algunas organizaciones de confianza que lo pueden aconsejar.

Resources / Recursos