Wednesday, December 28, 2011

Where Can You Find the Cheapest Homes?

Buyers can snag plenty of deals in housing today. Falling home values and record-low interest rates continue to push affordability to record highs. 
Nationally, the median list price for a home is $189,900, up 4.05 percent year-over-year. 
The following cities offer the lowest median list prices in the nation as of November: 
  • Detroit: $84,900
  • South Bend, Ind.: $102,000
  • Dayton-Springfield, Ohio: $109,900
  • Fort Wayne, Ind.: $109,900
  • Toledo, Ohio: $109,900
  • Las Vegas, Nev.-Ariz.: $122,000
  • Cleveland-Lorain-Elyria, Ohio: $129,900
  • Lakeland-Winter Haven, Fla.: $129,900
  • Akron, Ohio: $129,900
  • Ocala, Fla.: $129,500
  • Springfield, Ill.: $129,250
  • Wichita, Kan.: $130,828

38% of Homes Purchased in 2011 Bought with Cash

Despite record low mortgage rates, 2011 has seen an amazingly high-level of cash home purchases, according to the real estate research firm Hanley Wood Market Intelligence. No doubt that investors love that real estate environment and know that in the future they will be making big profits when real estate goes back up.

Jonathan Dienhart and Ken Lee, two analysts with the company, say between tight lending standards and a desperate search for yield by investors, cash purchases of homes – particularly for distressed properties – became even more common in 2011 than last year.
Dienhart and Lee analyzed data collected through Hanley Wood’s Housing IntelligencePro, and shared their findings in a blog post.

The two discovered that 38 percent of homes purchased in 2011 were bought with all cash. That’s up from 34 percent in 2010, and double the 19 percent rate in 2006.
According to Dienhart and Lee, this trend is likely to continue in the near term. They note that cash-paying investors are responsible for an increasing share of home purchases nowadays as prior homeowners abandon the ownership market and head back to rentals.

Saturday, December 17, 2011

5 States With the Most Mortgage Fraud

Mortgage fraud continues to climb in the country as $1.3 billion in questionable loans surfaced in the third quarter, according to a mortgage fraud index by Mortgage Daily.

Florida continues to have the most cases of mortgage fraud, according to the index. In Florida alone, mortgage fraud activity included more than $144 million in loans that were questioned in court, and Florida’s mortgage fraud index soared 45 percent in the third quarter compared to the previous quarter.
The five states that had the worst index ranking with mortgage fraud cases, according to Mortgage Daily, are:
  1. Florida
  2. California
  3. Minnesota
  4. New York
  5. Texas

10 States Hit Hardest by Foreclosures

The following are the top 10 states with the highest foreclosure rates in the country in November, according to RealtyTrac data.
  1. Nevada: 1 in every 175 home received a foreclosure filing in November
  2. California: 1 in every 211 homes
  3. Arizona: 1 in every 256 homes
  4. Utah: 1 in every 290 (This state saw a 74 percent increase in November from October in foreclosure activity.)
  5. Georgia: 1 in every 330 homes
  6. Michigan: 1 in every 330 homes
  7. Florida: 1 in every 358 homes
  8. Illinois: 1 in every 427 homes
  9. Ohio: 1 in every 500 homes
  10. South Carolina: 1 in every 517 (This is the first time South Carolina has made it into the top

Monday, December 12, 2011

BofA Considers Renting REOs Back to Previous Homeowners

In facing large inventories of foreclosures, Bank of America is considering a program that would allow investors to buy a foreclosed home and then rent it back to the former home owner, HousingWire reports.
Bank of America is looking for ideas on how to handle the large inventories of foreclosures in some areas where demand hasn’t picked up.

"We are looking at programs where you can capture somebody before the REO process and offer a deed-for-lease," Ron Sturzenegger, who leads the bank's legacy asset servicing division, explained to HousingWire. "We would go to the customer and say, 'We'll do a short sale. Will you be interested in leasing your property back? We're still going to sell the property. You will no longer be the owner. But you can be a tenant now in that same property and save you from moving on.'"

The program is still in very early stages and more details need to be worked out, Sturzenegger noted.

Friday, November 11, 2011

Monthly Mortgage Down About 40%

Improving housing affordability along with low mortgage interest rates means that home owners are paying a lot less these days for their monthly mortgage payment than they did just a few years back. Homeowners are paying nearly 40 percent less on their monthly mortgage payment than home owners paid in 2006.

According to Fiserv, the monthly mortgage payment for a median-priced single-family home today is $700, a drop of close 40 % from the high of the real estate market in 2006, when it was $1,140.

Housing affordability has improved dramatically because of declines in both prices and mortgage interest rates. Nationally, purchase mortgage payments now account for only 13 percent of monthly median family income, the lowest percentage on record (since 1971), and compared to 23 percent in the first quarter of 2006."

Wednesday, November 9, 2011

Credit Scores: 5 Things That Matter

Since your credit score is obviously super-important, and is derived from your personal credit history, you may feel justifiably confused by why you should have to pay 20 bucks to see it. The explanation for that I can summarize with one word: lobbying. The financial services lobby in this country is one of our democracy’s most powerful. To get a fair shake for consumers in virtually anything has always been an up-hill battle. In the case of getting a free look at your credit report, for example, it took years. In the case of being able to see your credit score, it hasn’t happened yet.

  • Payment history (35%) – This is your track record of paying back what you borrowed. Accounts in collection, late payments, and bankruptcy are bad; paying on time for a long period is good.


  • Amounts owed (30%) – This is based on the total amounts you owe, and the ratio of what you’re allowed to borrow to what you currently owe, called your “utilization ratio.” Maxing out your credit hurts it; keeping a lot of unused credit available helps it. Ideally, you want to keep your utilization ratio below 30 percent. So if you have a credit card with a $1,000 limit, you’d want to keep your balance below $300.


  • Length of credit history (15%) – This considers the length of time each credit account has been open, and when each account was last updated with payment or usage info. As you might imagine, the longer your history, the better. This is why if you’re going to cancel a credit card, all things being equal, ditch the newest and keep the oldest.


  • New credit (10%) – This includes recent inquiries and requests for credit. Regularly applying for new credit cards or other loans will cost you.


  • Types of credit used (10%) – There’s all kinds of credit out there, from revolving (credit cards) to installment (car and home loans.) Fair Isaac likes you to be well-rounded and sample them all. In short, diversity helps.





  • Monday, November 7, 2011

    Benefits of Prelisting Home Inspections

    Can I really obtain the home inspection in advance? The process seems to be useless since the prospective buyer gets the mortgage and then pays for his or her own inspection. It would seem like a good selling point if the property already had a clean inspection or the indicated repair were already taken care of. Michelle A.

    You absolutely can and should obtain an inspection on your home before you put it on the market. Given the way mortgage lending guidelines have tightened up and the fact that appraisal and condition issues are killling a larger number of transactions, obtaining a prelisting inspection differentiate your home from the competition and boost your home's chances of selling by helping satisfy prospective buyers that the property will:
    • Pass the lender's and appraiser's condition guidelines;
    • Not have surprise condition issues arise during the sale process and escrow; and
    • Be in a condition that reflects to the price they've agreed to pay for it.
    Here are some things you should think about as you decide whether to move forward with obtaining prelisting inspections and figure out a plan around how to leverage the reports.

    1. Prelisting inspections won't make the deal, but they can help optimize your chances of closing the deal. Buyers are not going to buy a house they wouldn't consider otherwise because it has reports, but if they are debating between your home and another property, a house with no issue, documentation that needed repairs have been completed, or even reports showing what needs doing and a corresponding discount can persusade buyers off the fence.

    Many homes fall out of escrow because of condition issues not discovered until the transaction is underway. Sometimes, advance inspection reports can surface issues, allow you to get repairs completed and thus avoid that fatal  issue. However, at other times, prelisting inspections show issues too big for you to have repaired that will be deal-killers for almost any mortgage lender. In this case, you do yourself the favor of forgoing even bothering trying to get it past a mortgage lender and empower yourself to list it as a cash-only sale for a fixer-upper price.

    2. Your prelisting inspection won't replace the buyer's inspections. To be clear, whatever inspection(s) you obtain won't be the inspection, it will just be an inspection. You don't want the buyer to rely totally on it and forgo his own due diligence for liability reasons; your aim is to either verify the place is in good shape, clear the place of major repairs or brief them on why the property is being priced in that way and what they'll need to do (or won't need to do) later, assuming you can negotiate an as-is offer.

    But you also want the buyer to still obtain his own inspections, so he can attend, ask questions, select the inspector and not fault you for anything that is missed. And you should work with your listing agent to require that the buyer sign your written advice to get his own inspections, as well as to make the property available to the buyer for just that purpose.

    Friday, November 4, 2011

    10 Cities Where List Prices Have Fallen the Most

    The following are the 10 cities where median list prices have dropped the most, based on year-over-year Realtor.com data from September 2011.
    1. Chicago
    Year-over-year change in median list price: -11.56 percent
    Median list price: $199,000
    2. Las Vegas 
    Year-over-year change in median list price: -11.05 percent
    Median list price: $120,000
    3. Detroit 
    Year-over-year change in median list price: -10.01 percent
    Median list price: $89,900
    4. Ventura, Calif. 
    Year-over-year change in median list price: -9.09 percent
    Median list price: $409,000
    5. Atlanta 
    Year-over-year change in median list price: -8.63 percent
    Median list price: $159,900
    6. San Francisco 
    Year-over-year change in median list price: -8.63 percent
    Median list price: $635,000
    7. Santa Barbara-Santa Maria-Lompoc, Calif. 
    Year-over-year change in median list price: -8.35 percent
    Median list price: $549,000
    8. Sacramento, Calif. 
    Year-over-year change in median list price: -8.30 percent
    Median list price: $210,000
    9. Los Angeles-Long Beach, Calif. 
    Year-over-year change in median list price: -6.94 percent
    Median list price: $335,000
    10. Tampa-St. Petersburg-Clearwater, Fla.
    Year-over-year change in median list price: -6.67 percent
    Median list price: $140,000

    Wednesday, November 2, 2011

    Mortgage Giant Faces Big Trouble Over Bad Lending Practices

    The U.S. Justice Department is suing Allied Home Mortgage, one of the country’s largest mortgage brokers, and accusing the company of fraud, according to a civil lawsuit.

    The lawsuit alleges that the mortgage broker’s lending practices led to thousands of Americans losing their homes and “tens of thousands” of defaulted loans and cost the U.S government hundreds of millions of dollars in losses. The lawsuit accuses Allied of violating FHA mortgage insurance requirements, claiming it “profited for years as one of the nation's largest FHA lenders by engaging in reckless mortgage lending." 

    According to the lawsuit, prosecutors say about a third of the loans originated by Allied defaulted from 2001 through 2010, amounting to $834 million in insurance claims HUD paid. A staggering default rate of “a 55%” occurred in 2006 and 2007 alone, the lawsuit charges. About 2,509 more loans are currently in default, which could have HUD facing $363 million more in claims, according to the lawsuit.

    “The losers here were American taxpayers and the thousands of families who faced foreclosure because they could not ultimately fulfill their obligations on mortgages that were doomed to fail,” attorney Preet Bharara said at a news conference Tuesday announcing the lawsuit.

    Friday, October 21, 2011

    Foreign Buyers Could Be Soon Buying a Home & Stay

    A bill recently introduced in the Senate proposes that foreigners who spend $500,000 or more on a residential property should be eligible to obtain a visa that will allow them to stay in the country.
    Several stipulations would be attached to the offer, however. Foreign investors would need to purchase a primary residence of at least $250,000 but spend at least $500,000 on residential real estate (another property could be a rental) — and through cash purchases only. The property would also need to be purchased for more than its appraised value, and the buyer would need to agree to live in the home for at least 180 days each year, which means any foreign buyer would be required to pay U.S. income taxes on any foreign earnings too. 

    The visa could be renewed every three years, but it would not serve as a way toward citizenship.
    "Many people want to come and live in the United States," says Sen. Charles Schumer, D-N.Y., who introduced the legislation this week with Sen. Mike Lee, R-Utah. "They will be here spending money and paying taxes, and the most important thing is they'll sop up the extra supply of homes we have right now compared to demand, and that's what's dragging our economy down."

    Some brokers say that a visa incentive to foreign buyers could potentially even triple sales in their markets.
    "California, Florida, New York, Colorado, Hawaii, and Texas — those states will see a huge increase in demand," Sandra Miller, a broker at Engel & Volkers in Santa Monica, told the Los Angeles Times.

    Wednesday, October 12, 2011

    Top 6 Reasons Mortgage Applications Are Denied

    About 50% of home refinance and  30 percent of purchase mortgage applications are denied.

     It's tough especially since mortgage lenders have become increasingly restrictive in terms of their lending guidelines since the housing market crash.

    Here are the top 6 reasons mortgage lenders reject applications.
    1. Income issues. Most failed mortgage applications falling into this category have income too low for the mortgage amount they are seeking. But increasingly, the recent turmoil of the job market are also causing this issue, as people who have changed their line of work or have changed from salaried employee to freelancer over the last couple of years can also have their home loan applications rejected based on income.When you are self employed you must show proof of at least 2 years income.If you have not been in business for at least two years you will not be approved for a mortgage.

    2. Debt To Income Ratio. If the mortgage for which you're applying plus your monthly payments on credit card, car and student loan debts are more than 45% of your total gross income, you could have problems qualifying for a home loan. You might also run into problems if you rely too heavily on bonuses, overtime, cash wages or rental income, all of these can be difficult or impossible to get a mortgage.

    3. Credit issues. Today, the mortgage-qualifying FICO score cutoff falls somewhere between 620 and 660, depending on which lender and which loan type you need. More than one-third of Americans, by some numbers, have credit scores too low to qualify for a home loan. Even if your credit score is high enough to qualify, if you have any late mortgage payments, a short sale, a foreclosure or a bankruptcy in the last 2 years, loan qualifying could be difficult.

    4. Property didn't appraise. Since the whole industry had its hand smacked for allowing home values to skyrocket in a very short time, (2002 to 2006) appraisal guidelines have tightened up. So, it is increasingly common to have the property appraise for a price lower than the sale price negotiated between the buyer and seller.Keep in mind that as you negotiate back and forth with the seller, there might be some foreclosed properties in your neighborhood that just sold at lower than expected which brings down the value of the property you may be tring to sell. This change the whole game and unavoidably brings the value down of the properties in the neighborhood.

    5. Condition problems. With all the distressed properties on the market, and with most non-distressed sellers barely breaking even, more home-sale transactions than ever are falling apart due to condition problems with the property. Many lenders will not extend financing on homes where the appraiser points out problems like cracked or broken windows, missing kitchen appliances, electrical problems, or wood rot.
    And in the world of condos and other units that belong to a homeowners association, if more than 25 percent of units are rented (rather than owner-occupied) or more than 15 percent are delinquent on their HOA dues, new applications for refinance or purchase mortgages on units in the development are likely to be rejected.

    6. Technical difficulties with application. The days when lenders just took your word for it are long gone. Applications with incomplete or unverifiable information will fail. If any of these mortgage loan application glitches arise in your homebuying or refinancing process, it's critical that you connect with your mortgage professional to determine what course of action to take to get your loan approved.

    Friday, October 7, 2011

    Don't upgrade your house beyond the level of neighboring homes

    Don't upgrade your house beyond the level of neighboring homes.
    Real estate experts have long observed that home buyers are hesitant to pay a premium to buy the best house on an otherwise modest neighborhood.

    Customizing a home with extravagant features, beyond all reason, does make your house harder to sell later. But adding features and upgrades that make your life in your home mirror your dream life, or create the comfort and lifestyle your family craves? If you can afford it without draining your home of equity or going into consumer debt, go for it, especially if you plan to be in the property over the long term.
    It's your home, not just another financial asset, and one of the major advantages of ownership is your ability to create a comfortable, personalized habitat for your life.

    Don't necessarily expect to get back your investment in upgrades dollar for dollar, and do avoid making bizarre customizations unless you're OK with reversing them when you do list the place for sale, but don't hold back on creating a custom home experience for your family and your lifestyle because you heard it's a bad investment.

    Paying off your mortgage is bad.

     Paying off your mortgage is not such a good idea today.

    During the real estate boom, many an mortgage companies espoused borrowing against your home to buy more homes, creating wealth or consolidating debts or even buying cars, boats, vacations etc.. Basically they were saying to Americans to use their home equity as cash cow.

    While that worked for very few, for awhile, you can see how that turned out. A real disaster and terrible advice. But even now, traditional and conservative financial advisers still say that paying off your mortgage is not the best use of cash, as your mortgage interest is tax deductible, and the better use of the funds is to invest them for growth.

    For people who can and are inclined to pay their homes off, though, this rule is off-target. Paying off your home is less about making the most assertive financial move possible, and more about creating security, fixing a low set of living expenses, and hedging against economic and job market uncertainty.

    The best practice in today's economy is to make money moves that create maximum sustainability and minimum stress; if that means paying your mortgage off, then do it.

    30-Year Mortgage Rates Drop Below 4%

    For the first time ever, 30-year fixed-rate mortgages fell below 4 percent, Freddie Mac reported in its weekly mortgage market survey.

    Friday, September 30, 2011

    Fixed-Rate Mortgages Lowest on Record

    Freddie Mac (OTC: FMCC) released the results of its Primary Mortgage Market Survey (PMMS), coming on the heels of the Federal Reserve's recent announcements. The conventional 30-year fixed averaged an all-time record low at 4.01 percent; likewise the 15-year fixed averaged an all-time record low at 3.28 percent for the week. Of the five regions surveyed in Freddie Mac's survey, the West region recorded the lowest average rate for the 30-year fixed dipping below 4.00 percent to 3.95 percent.

    Wednesday, September 28, 2011

    New Scam Dupes Homeowners into Fake Loan Audits

    More home owners are being tricked into a fake forensic loan audit, a new scam that targets struggling home owners looking for a loan modification to save their home from foreclosure.

    Several scam organizations, usually linking themselves to attorney and loan auditors, have popped up in the last 2 years offering forensic loan audits.

    In the scam, the organizations claim to review a homeowner’s mortgage loan documents to determine whether their lender had complied with state and federal lending laws. They then promise to get the home owner a quick loan modification and possibly a principal reduction on their mortgage too. Home owners pay an upfront fee usually around $3,000 or even more.

    However, home owners say that they aren’t getting a loan modification and usually nothing happens after they pay the upfront money.

    They lure homeowners to believe that by hiring them for a review of a loan modification package, they can expedite the process and get better results, or they make false promises that they can get a loan modification and/or principal reduction. Homeowners are not typically getting any results at all.  The scammers are just taking the money and disappear.

    As always it is always better to deal with your own lender or call a lawyer as opposed to you replying to an unsollicited offer.

    Saturday, September 17, 2011

    Joke of The Week

    Nighttime Prayers  

    A father put his 3-year old daughter to bed,

    told her a story and listened to her prayers which ended by her saying:


    "God bless Mommy, God bless Daddy, God bless Grandma and goodbye Grandpa."

    The father asked, "Why did you say goodbye Grandpa?"

    The little girl said,

    "I don't know, Daddy, it just seemed like the thing to do."

    The next day grandpa died.

    The father thought it was a strange coincidence.

    A few months later the father put the girl to bed and

    listened to her prayers which went like this:



    "God bless Mommy, God Bless Daddy and goodbye Grandma."

    The next day the grandmother died.
    "Holy Moley, thought the father,

    "this kid is in contact with the other-side."

    Several weeks later when the girl was going

    to bed the dad heard her say:

    "God bless Mommy and goodbye Daddy."

    He practically went into shock.

    He couldn't sleep all night and got up

    at the crack of dawn to go to his office.

    He was nervous as a cat all day,

    had lunch and watched the clock.



    He figured if he could get by until midnight he would be okay.

    He felt safe in the office,

    so instead of going home at the

    end of the day he stayed there,

    drinking coffee,

    looking at his watch

    and jumping at every sound.


    Finally, midnight arrived,

    he breathed a sigh of relief and went home.

    When he got home his wife said,

    "I've never seen you work so late, what's the matter?"

    He said, "I don't want to talk about it,

    I've just spent the worst day of my life."

    She said, "You think you had a bad day,

    you'll never believe what happened to me this morning.

    My golf pro dropped dead in the middle of my lesson."

    Wednesday, September 14, 2011

    Poverty Level Rises to Highest Level Since 1993

    More Americans are living in poverty: The number of Americans living in poverty rose to 15.1 percent, its highest level since 1993, the Census Bureau reported Tuesday. 


    Median household income has fallen 7 percent since 2000 (adjusting for inflation) to $49,445, its lowest since 1996.

    The largest drops in incomes were from young professionals and minorities. The median income for black households dropped 3.2 percent to $32,068.

    Indeed, the number of households “doubling up” grew from 19.7 million in 2007 to 21.8 million in the spring of 2011, according to Trudi Renwick, the Census Bureau’s chief of poverty statistics.

    Meanwhile, the only age group to prosper in the last decade: Americans aged 65 and older. Adjusted for inflation, their household income increased 7.5 percent over the decade, according to U.S. Census data. 

    States With the Highest Number of Underwater Borrowers

    1. Nevada: 60 percent of all properties with a mortgage were considered underwater
    2. Arizona: 49%
    3. Florida: 45%
    4. Michigan: 36%
    5. California: 30%

    Thursday, September 1, 2011

    Rihanna Lawsuit Says $6.9 Million House Leaked and Prudential California Realty Real Estate Agent Didn't Give Her Comps

     Rihanna, born Robyn Fenty, purchased the home in July 2009 for $6.9 million.

    According to the suit, during the purchase of the home she was kept in the dark about several problems with the home, problems that came to light following a "moderate rainstorm" in January 2010.

    "The rainwater pooled on the second floor balcony ad seeped into numerous rooms of the house, causing extensive water intrusion into various rooms," the suit alleges.

    After the flood, the singer hired an engineering firm to assess the damage; during an inspection, the firm found "a host of defects in the property, including numerous waterproofing defects and evidence of water intrusion and associated damage."

    Because of the defects, the suit alleges, the actual value of the home is "millions of dollars less" than the $6.9 million she paid.

    Rihanna, who alleges professional negligence, negligence, breach of fiduciary duty, fraud, breach of contract and breach of implied warranty, is seeking unspecified damages, plus interest, court costs and attorneys' fees.

    Read the full lawsuit here.






    Wednesday, August 31, 2011

    Deducting a loss on a real estate sale

    Deducting a loss on a real estate sale

    Due to the weak real estate market, many homeowners are forced to sell at a loss, if they are able to sell at all. But can a homeowner deduct a loss from income taxes?

    Unfortunately, the answer is NO, as a loss incurred on the sale of a personal asset such as a personal residence is NOT deductible.

    But there is a way to deduct a loss on the sale of a home: You can convert it to a rental before you sell your home.
    This requires you to rent out the home to someone who is not related to you for a reasonable market rent. Moreover, you'll have to report the rental income you receive to the Internal Revenue Service, but you may have little or no taxable rental profits due to depreciation and other deductions for rental expenses.

    When you convert your residence into a rental, you convert it from a personal asset to an investment asset. Losses on the sale of investment assets are tax-deductible.
    However, when you convert a residence into a rental home you will not be able to deduct its entire decline in value since you purchased the home.

    Rather, your deductible loss upon the home's later sale is limited to the decline in value after the conversion to a rental. The reason for this is the way in which the home's adjusted tax basis (value for tax purposes) is calculated.

    When you change property you held for personal use to rental use, your adjusted basis is the lesser of the following values:
    • The property's fair market value at the time of the conversion; or
    • Its adjusted basis at the time of the conversion.
    Your adjusted basis is generally the cost of the property plus improvements you had done after the purchase. Fair market value is the price at which the property would change hands between a buyer and a seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts.
    Example: Joe purchased a home for $500,000 in 2002. In 2010, he decides to rent out the home. Due to the decline in the real estate market, its fair market value at the time of the conversion to a rental is $300,000.

    Joe's adjusted basis in the home, therefore, is $300,000 since this is less than its original $500,000 basis. In 2011, Jack sells the home for $275,000. This leaves him with a $25,000 tax-deductible loss (a $275,000 sales price minus the $300,000 adjusted basis equals a $25,000 loss).

    Any homeowner who is seriously thinking about converting his or her home to a rental should obtain an appraisal of its value from a qualified real estate appraiser. This will establish its fair market value at the time of the conversion.

    2 Men Face Charges on Duping Home Owners

    Once again I cannot stress enough how important it is for anyone  facing trouble with making his/her mortgage payment to contact their lender immediately to find a solution. Lenders are working hard to making it possible for anyone to make their payments on time. It is best for a lender to find an arrangement as opposed to going through foreclosure process as it costs a lot of money for a lender to foreclose a property.

    Two men in San Bernardino, Calif., face charges of scamming at least 25 home owners on the verge of foreclosure into fake refinancing agreements, affecting more than $17 million in home loans, prosecutors say.
    Stephen Andrew Easterly, 47, and Emanuel Percival, 36, face 45 criminal counts and were arraigned on Monday.

    Prosecutors say the men told home owners’ facing foreclosure that they could refinance their loans and lower their monthly payments. The victims allegedly paid the men between $3,500 and $7,000 to participate in their program, according to the San Bernardino County District Attorney's Office.
    However, the home owners say instead of getting their loans restructured, they ended up with two outstanding home loans, and their homes ultimately went into foreclosure.

    Prosecutors say that the men allegedly signed documents as "authorized representatives" of several banks, and that one of the men also is accused of creating fictitious checks and mailing them to banks.

    Why The housing Bubble and How To Avoid it

    The housing bubble of 2006 burst in large part due to lax lending practices that led up to the housing recession. Let's not forget that lending was not the only issue that let to the housing downturn and one of the worst crisis in American history. Houses were unaffordable in most market and shoukd have never been sold to people. From 2002 to 2006 real estate in Los Angeles was appreciating 15% per year.

    As a great real estate agent one should have never sold those inflated home as it was obvious that this was going to lead to being a terrible investment.

    If you want to buy and sell real estate correctly in Los Angeles, call 1-877-APPLYFREE

    Foreclosed Homeowners Take Out Revenge and Destroy Properties

    Some foreclosed angry homeowners are taking out their anger on the homes they are forced to leave behind, smashing holes in the walls, scribbling graffiti everywhere, leaving piles of trash, and ripping out kitchen appliances. More lenders,  facing a growing problem from trashed foreclosures, are choosing to offer homes at big discounts rather than fix the big repairs, which can send surrounding home values (such as yours) in the neighborhood spiraling down.

    I have seen some home values greatly diminish from foreclosed home owners who have trashed it. For example, one home that would have fetched $250,000 back in 2006 during the housing boom that would now sell for about $75,000 because it was trashed by the former homeowners.  It looks like someone took revenge, which had big holes in the wall, appliances ripped out, and piles of trash.  Some real estate professionals and lenders are even blaming the high number of real estate deals falling apart due to more homes being left in very bad condition by the foreclosed homeowners.

    Home buyers are very unlikely to be attracted by these destroyed homes and look at these homes and think that if this is the damage I can see, what else did the home owner do to this place that I can't see?'

    Some home owners facing foreclosure place the blame on banks for their woes so they leave behind a mess for the bank. But trashing a home can backfire. Some banks are saying they may even start taking steps to sue home owners for the cost of repairs, and law enforcement officials say home owners can be charged with vandalism as well as theft if they remove items that don’t belong to them from the home.

    Sunday, August 28, 2011

    How to Avoid Writing a Resume That Will Disqualify YOU For a Job


    According to the Bureau of Labor Statistics, 13.9 million Americans were unemployed as of last month. And according to the jobs website CareerBuilder, a lot of them are going to stay that way if they keep sending out terrible resumes.

    This week, CareerBuilder announced the results of its annual survey of more than 2,600 employers nationwide. Nearly half (45 percent) of the human resource managers they polled said they spend, on average, less than one minute reviewing a resume.

    That’s a pretty small window for you to impress a boss. Sometimes it takes less than a minute to dispose of a resume. Here are some actual resume lines that those HR managers said doomed an applicant in mere seconds…

    “Candidate said the more you paid him, the harder he worked.”
    “Candidate was fired from different jobs, but included each one as a reference.”
    “Candidate said he just wanted an opportunity to show off his new tie.”
    “Candidate listed her dog as reference.”
    “Candidate listed the ability to do the moonwalk as a special skill.”
    “Candidates – a husband and wife looking to job share – submitted a co-written poem.”
    “Candidate included ‘versatile toes’ as a selling point.”
    “Candidate said that he would be a ‘good asset to the company,’ but failed to include the et in the word asset.”
    “Candidate’s email address on the resume had shakinmybootie in it.”
    “Candidate included that she survived a bite from a deadly aquatic animal.”
    “Candidate used first name only.”
    “Candidate asked, ‘Would you pass up an opportunity to hire someone like this? I think not.’”
    “Candidate insisted that the company pay him to interview with them because his time was valuable.”
    “Candidate shipped a lemon with resume, stating “I am not a lemon.’”
    “Candidate included that he was arrested for assaulting his previous boss.”

    Talk about making an impression to a possible future boss!

    So what can you do?

    Write a resume, not a biography. You’ve probably led an interesting life, but your next employer only wants to hear about the parts that matter to him. “Only list experience that’s relevant to the job description,”

    Summarize. Since you only get a minute of someone’s time. Replace the cliched “objective” with a “professional summary recapping your relevant experience in one or two sentences.” As with everything else on the resume.

    “Keep your descriptions to the point and trim out any unnecessary words.”
    Read it again and often. Needless to say, if an HR manager sees a spelling mistake in your resume, it’s all over for you. “A lot of hiring managers will toss any resume that contains spelling, grammar or formatting errors, regardless of your past experience.

    Friday, August 26, 2011

    Foreclosures Sell for Up to 40% Less

    Foreclosures made up about one-third of all home sales during the spring quarter (April to June), and sales were about six times the percentage of foreclosures in a healthy housing market, RealtyTrac Inc. reports.
    Foreclosure sales likely would have been much higher too if so many banks hadn’t slowed their foreclosure processes while state and federal officials continued to investigate possible faulty practices.

    Foreclosure sales, which include homes purchased after they receive a notice of default or that were repossessed by lenders, peaked two years ago at 37.4 percent of sales, compared to 31 percent in the April to June quarter.

    During the second quarter, 265,087 homes sold were in some stage of foreclosure or owned by banks, but that’s down 11 percent from the same period a year ago, RealtyTrac reports.

    The state with the highest number of foreclosure sales was Nevada, where foreclosure sales accounted for 65 percent of all sales. Arizona followed with  foreclosure sales accounting for 57 percent of all home sales for the quarter.

    Foreclosures Continue to Weigh on Home Prices

    Foreclosed homes continue to sell for less than other homes. During the spring, bank-owned homes sold for 40% less than the average price of other homes. Sales of homes in the foreclosure process or short sales sold for 21 percent less than the average home sold.

    The average sales price of a foreclosed property was $164,217, a drop of less than 1% from the January-March quarter and a nearly 5 percent drop from the April-June quarter in 2010.

    A "Blonde" cure for a barking dog

    A young woman, a blonde in fact,
    and her husband are lying in bed attempting to sleep all the while listening to the next door neighbor's dog barking incessantly for hours.
    Finally, the blonde jumps up out of bed and says,
    "I've had about enough of this!"
    as she angrily goes downstairs and out the back door.
    Finally she comes back up to bed and her husband asks,
    "What did you do, the dog is still barking?"
    The blonde says,
    "I moved the dog over to our backyard.
    Now, Let's see how THEY like it!"

    __________________
     

    IRS to Expand Examinations for Forgiven Mortgage Debt

    With the expanding recession that we are not officially having according to the White House but is now being questioned by such luminaries as Congresswoman Maxine Waters and what the media and other government agencies claim we are not having officially either, the Internal Revenue Service has found another area that they will expand audit examinations to potentially increase revenues to the U.S. Treasury. 
    In a study by the GAO (Government Accounting Office) it has been determined that substantial tax revenues are not being correctly reported by those that have had mortgage debt forgiven based upon a new study provided by the GAO.
    Preliminary IRS investigation of this arena of the failing economy suggests that in depth examinations, or audits could provide substantial new assessments and therefore potential cashflow for the government treasury on the backs of those already destitute.

    IRS statistics indicate after reviewing available data an approximate $25 billion of forgiven debt was excluded from taxable income for those reporting forgiven debt just in 2008. The IRS estimates further suggest taxpayers excluded somewhere between $6.4 billion to $11.8 billion revenue to the U.S. Treasury.
    IRS officials reported that it may be difficult to collect additional taxes on forgiven debts particularly when taxpayers are already insolvent and defaulting on debts, and that this and other considerations, such as the IRS's return on investment, would affect the IRS's decisions about allocating resources for enforcing this provision.

    The GAO said there is evidence that some taxpayers have the ability to pay additional tax if owed, and certain housing market data show that the potential for significant noncompliance with the exclusion of forgiven mortgage debt exists.

    Banks Agree to More Short Sales

    Banks are agreeing to more short sale transactions, and short sales are taking less time to sell, which is helping to clear large inventories of distressed properties more efficiently, says James J. Saccacio, RealtyTrac CEO, in releasing new housing data this week.

    “This is a glimmer of hope that lenders are getting more realistic,” Rick Sharga, senior vice president of RealtyTrac, told Bloomberg News. “It’s a win for borrowers who avoid foreclosure, buyers who get a house in better condition and banks that lose less money, which is also a win for taxpayers.”

    During the second quarter, the number of homes nearing foreclosure accounted for 12 percent of total home sales, with banks agreeing to more transactions at prices below the outstanding mortgage balance, RealtyTrac reported in releasing its second quarter data this week.

    What’s more, pre-foreclosure homes took an average of 245 days to sell after receiving the initial foreclosure notice--that’s down from 256 days in the first quarter, RealtyTrac reports.

    Sales of homes in the foreclosure process or short sales sold on average for a 21 percent discount--or an average sales price of $192,129--compared to the sales price of non-distressed homes.

    Friday, August 19, 2011

    Studies show that less than 16% of homeowners return to their previous agents

    Studies show that less than 16% of homeowners return to their previous agents; that stat demonstrates the client isn't overwhelmingly thrilled with most agents' service. It also speaks to agents' after sale service. Most consumers are merely satisfied with our service as agents. In a survey by NAR, 69% of the people surveyed said they were satisfied with their real estate agent.
     
    Satisfied to me would probably be a C grade level. It's hard to create loyalty to an agent or brand with customers and clients being merely satisfied with our service.
     
    "Do you, Mr. Seller, want to take the risk of extra stress and frustration in this transaction from an ordinary agent? An agent who, based on the stats, will lead you to do with business with them again less than 16% of the time?"

    Well I think that you just have to look atthe real estate and financial mess we're in right now and yuo can make your own conclusion.

    If you want to buy or sell real estate correctly, you need to call me at 1-877-APPLYFREE.

    Housing Affordability at Highest in 20 Years

    Housing affordability continued to be near record highs in the second quarter, hovering near its highest level in the 20-plus years it has been recorded, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.

    About 72 percent of all new and existing-homes sold in the second quarter of the year were affordable to families earning the national median income of $64,200, according to the index. The record high remains 74.6 percent, which was reached last quarter.

    "At a time when home ownership is within reach of more households than it has been for more than two decades and interest rates are at historically low levels, the sluggish economy and the extremely tight credit conditions confronting home buyers and builders remain significant obstacles to many potential home sales," says Bob Nielsen, chairman of the National Association of Home Builders. "That said, however, some housing markets across the country have stabilized and are beginning to show signs of a budding recovery."

    To find out if you can afford a home, to Buy or Sell the right way call 1-877-APPLYFREE

    Wednesday, August 10, 2011

    Joke of The Week

    The Parrot Died!

    At dawn the telephone rings . .    .

    "Hello, Senor Rod?" 

         This is Ernesto, the caretaker at your lake house in Bella Vista."

    "Yes, Ernesto. 

    Is there a    problem?"

    "Um, I am just calling to advise you,
    Senor Rod, that your parrot - he is dead."

    "My parrot? Dead? 

    The one that won the international competition?"

    "Si, Senor, that's the one."

    “I spent a small fortune on that bird. 
    What happened?"

    "From eating the rotten meat, Senor Rod.”

    "Rotten meat? 
    Who the hell fed him rotten meat?"

    "Nobody, Senor. 
    He ate the meat of the dead horse."

    "Dead horse? 

     What dead horse?" 

    "The thoroughbred, Senor"

    "My prize thoroughbred is dead?"

    "Yes, Senor Rod,

    he died from all that work pulling the water cart."

    "Are you insane?? 

    What water cart?"

    "The one we used to put out the fire, Senor."

    "Good Lord!! 

    What fire are you talking about?"

    "The one that destroyed your house, Senor! 

    A candle fell and the curtains caught on fire."

    "What??”

      “my house is destroyed because of a candle??!!"

    "Yes, Senor Rod."

    "But there's electricity at the house!!”

       “What was the candle for?"

    "For the funeral, Senor Rod."

    "WHAT BLOODY FUNERAL??!!"

    "Your wife's, Senor Rod.    

    “She showed up very late one night
     and I thought she was a thief,
    so I hit her
     with your new
    Taylor Made Super Quad 460 golf club."


    SILENCE........... LONG    SILENCE.........


    "Ernesto, if you broke that driver, you're in deep trouble!

    Wednesday, August 3, 2011

    BofA Weighs Reducing Some Troubled Owners’ Loans

    Bank of America, the country’s largest bank, has faced a flood of borrowers defaulting on loans and lawsuits over some of its foreclosures since it purchased Countrywide Financial Corp. in 2008. Now, reportedly, the bank is in talks with state and federal officials to write down the principal owed on some struggling borrowers’ loans in exchange for a release from the mounting legal disputes against it, according to The Wall Street Journal.

    The talks are part of an ongoing settlement between banks and state and federal officials over bad reviews and paperwork processing problems with foreclosures that surfaced last fall. Bank of America reportedly has approached officials in one-on-one talks about the mortgage writedown proposal.

    The principal reductions would apply to the bank’s own mortgages as well as those it services from private investors, The Wall Street Journal reports. Borrowers would have to prove financial distress to qualify. The principal amount would also have to be $1 million or less in certain areas.

    In return for the writedowns, Bank of America reportedly has told state and federal officials that it wants to be protected from future litigation in regards to its mortgage servicing.

    The Wall Street Journal says it’s unknown whether other banks are putting forth similar proposals.
    Source: “BofA Proposes Loan-Forgiveness Deal,” The Wall Street Journal (Aug. 2, 2011)
    Read more:
    5 to Watch: Banks, States Near Deal on Foreclosure Fund

    BEER, FISHING, SEX & GOLF

    A man was walking down the street when he was accosted by a
     particularly dirty and shabby-looking homeless man who asked him for a couple of
     dollars for dinner.

     The man took out his wallet, extracted ten dollars and asked,

    "If I give you this money, will you buy some beer with
     it instead of dinner?"

     "No, I had to stop drinking years ago,"
    the homeless man replied.

     "Will you use it to go fishing instead of buying food?"
    the man asked.

     "No, I don't waste time fishing,"
    the homeless man said. "I need to spend
     all my time trying to stay alive."

     "Will you spend this on greens fees at a golf course instead of food?"
     the man asked.

     "Are you NUTS!"
    replied the homeless man.
    "I haven't played golf in 20 years!"

     "Will you spend the money on a woman instead of food?"
    the man asked.

     "What would I get for ten lousy bucks?"
    exclaimed the homeless man.

     "Well," said the man,
    "I'm not going to give you the money.
    Instead, I'm going to take you home
    for a terrific dinner cooked by my wife."

     The homeless man was astounded.
    "Won't your wife be furious with you for doing that?

    I know I'm dirty, and I probably smell pretty disgusting."
     The man replied,

    "That's okay. It's important for her to see what a man
    looks like after he has given up beer, fishing, golf, and sex."

    Wednesday, July 27, 2011

    Ocwen Financial Will Reduce Your Loan if You Share Future Appreciation

    Ocwen Financial Corp., a servicer of residential mortgages, launched a new loan modification program to reduce the principal on a mortgage for delinquent borrowers, but the borrowers must agree to let loan investors share in future appreciation of the home’s value when the market recovers.

    Through the Shared Appreciation Modification program, Ocwen will write down the principal of the loan to 95 percent of the home’s current market value. The amount written down will then be forgiven in one-third increments over a three-year timespan, as long as the home owner remains current on the modified mortgage.

    Then, “when the house is later sold or refinanced, the borrower must share 25 percent of the appreciation with the investors that own the loan; borrowers keep 75 percent of the gain,” the company notes.
    Loan modifications will be available only to home owners in negative equity.

    "Like all modifications, SAMs help home owners avoid foreclosure. But they also restore equity,” says Ocwen CEO Ronald Faris in a public statement about the program. “That's a significant benefit to the customer and, we believe, the economy and housing market. Psychologically, it's important too. Our analytics tell us that an underwater mortgage is one-and-a-half to two-times more likely to default than one with at least some positive equity.”

    The program, which is expected to be rolled out into 33 states, is one of the first principal reduction programs started by a private company. 

    Monday, July 25, 2011

    How To Buy a Home Bellow Market Price

    I don't advertise real estate specials or deals on black Friday, or other U.S holidays and we really should so I am going to let everyone in on a secret. There are thousnds of homes on the market in Los Angeles County right now and you can buy any of them for less than the asking price, just give me a call and I will leave the house and make it happen.  I will be near the phone all day.  You won't have to wait in a line and you can wait until after sunrise to make that offer.

    Real estate really is the gift that keeps on giving and real estate sales are just as important to the economy as retail sales are.

    Andre Plessis
    Tel: 310-266-9463

    Friday, July 22, 2011

    7 Home Staging Tips To Sell Your Home Faster

    Here’s some advice to help keep that budget down and get the home looking great:

    1.    Ask for advice. Even if you don’t get a professional home stager, a second set of eyes from an experienced REALTOR, who has some knowledge about home staging will be invaluable, and could determine how much more and how fast you could be selling your home.

    2.    Make breathing room. Moving things around doesn’t cost anything. Rooms that have a lot of furniture may look nice to you, but crowded to potential buyers. Spacing things out makes a room look bigger, and lets buyers mentally fill in the gaps with their own furniture.

    3.    Be sparse, not Spartan. Perhaps worse than clutter is nothing at all. An empty room is not going to excite anyone, and it will draw more attention to the condition of the walls, floor, and ceiling. Think of a pleasant-looking room that could appeal to potential buyers: There are simple decorations that catch your eye, and that are spaced out. Flowers, pot-pourris or fruit baskets will look nice.

    4.    Minimize personal stuff. In the bathroom and kitchen, clear the countertops and of excessive, kitchen equipment,  bottles, brushes, and cosmetics and use simple, color-coordinated towels. Take down personal photos, including off the fridge (magnets too). Pack up the knick-knacks scattered across the shelves and dressers. You don’t necessarily need to rent a storage unit for all this: You can keep it in the garage, as long as it’s tidy.

    5.    Make things shine. Polish furniture. Clean windows, fixtures, doorknobs, fans, and lights. This is simple and cheap but makes a huge visual difference.

    6.    Think twice about big customizations. Replacing the carpet or repainting may seem logical, but not everybody has the same taste and the buyer may want to change things again anyway. You should consider a change if age or crazy style are issues. If you do, go for simple, neutral colors.

    7.    Create curb appeal. First impressions matter most. Potential buyers will drive by your house first. If they do not like the outside, they have no reason to go inside. Clear out the tools and junk, keep the lawn clean, and trim the hedges. Add fresh flowers. Fresh mulch may spruce things up cheaply, and if you don’t want to paint the whole house, paint the trim, front door, and shutters. If it’s within your budget, you could hire professional landscapers.

    Wednesday, July 20, 2011

    How to Use Your Smartphone as a Weapon

    4 Safety Mobile Apps You Need

    Real estate safety expert and trainer Tracey Hawkins with Safety and Security Source noticed in the real estate safety classes she teaches that practically all of the agents had smartphones lying out in front of them. That’s when she realized that the device that most real estate professionals already carry can become one of their greatest safety aids when meeting with clients and showing homes. Hawkins, a former real estate professional herself, began to research safety apps and came up with a list of her top four picks that she feels are must-haves for anyone working in real estate.

    Moby
    www.mymoby.com
    Devices: BlackBerry, iPhone, and Android (coming soon)
    Cost: Free, premium plans available ($9.95 per month/$99.94 per year)
    Hawkins chooses the Moby app as one of her top picks because of its check-in feature that could be beneficial to real estate professionals at open houses and showings. The app will send messages at predetermined times that ask “Are you OK?” If two questions go unanswered, the app will automatically notify the contacts you select that you failed to respond and provide your GPS location, which it gathers automatically from your smartphone.
    Some of the app’s other features:
    • Tracking tool: You can selectively reveal your location to certain contacts. The app can be set to send your GPS location periodically to whomever you choose and keep others up-to-date while you’re on the go. You can also leave notes to your contacts, such as “on my way to a vacant property” or “a bit nervous around this new client.”
    • Alert tool: With one touch of a button, you’ll be able to alert your contacts or emergency personnel if you need help. The alert will automatically include your GPS location.
    A stepped-up premium plan is available ($9.95 per month/$99.95 per year) that can be used to send your alerts to not only your contacts but also a 24/7 security monitoring system. The monitoring system can determine the appropriate emergency services needed and dispatch police, ambulance, or fire responders using your exact GPS location from your phone.
    * On iPhone, find Moby by searching “Moby by Contigo” in the iTunes app store.

    Real Alert
    For iPhone: http://itunes.apple.com/us/app/real-alert/id436455476?mt=8
    For Android: https://market.android.com/details?id=com.realalert.android
    Devices: iPhone and Android
    Cost: $1.99
    Jones’ app has gotten lots of buzz lately within the industry from REALTOR® associations and practitioners inquiring about it since it debuted late in May. The app allows you to quickly alert your emergency contacts or police when you feel threatened as well as discreetly record “creep data,” key details about suspicious people you encounter.
    The app features:
    • A quick tap — one-button push — to speed dial and alert your emergency contacts when you need help.
    • A quick-tap button (double tap in this case to avoid accidental calls) to instantly call 911.
    • The ability to record “creep data,” which allows you to detail physical descriptions, vehicle information, and other important information for police. You can also record audio details or even take a photo.
    • Retrieve the location of nearby hospitals by using your GPS location.
    • A quick-tap button to sound an alarm to ward off potential attackers. (The volume will depend on the sound setting on your phone.)
    • The ability to turn your smartphone into a flashlight.
    SafeTREC
    http://safetrec.com
    Devices: Most mobile devices
    Cost: Free limited plan; full-featured plan $9.95 per month
    With this app, whenever you feel in danger, you can press a panic button on your phone that instantly alerts others that you need help. E-mail and text messages then will be sent to your emergency contacts, along with your precise location using your phone’s GPS technology. The paid version of this app will also send the message to a 24/7 live conference call help center, which will contact emergency responders if necessary.
    The paid version of this app also features an “Emergency Safety Profile” that is sent with your messages. This profile can provide critical details of your emergency situation to responders, such as your location, suspect information, and your one-hour location history. You also can upload images, sounds, and video to the profile to provide responders with extra details. The profile also includes your medical information, such as allergies, blood type, and your physical description (along with your photo).

    IcePics
    http://www.icepics.com
    Device: iPhone
    Cost: $2.99
    Take a photo of a suspicious person with just one press of a button and have it e-mailed instantly to your emergency contacts, along with your location information — you can even do it without that person ever knowing. IcePics (In Case of Emergency Pictures) is an iPhone app that makes your camera instantly accessible via an icon on the front screen of your phone. You can snap a photo discreetly too: Hold the phone to your ear and pretend you’re making a phone call but tilt the phone toward the person to take the photo — the photo is taken without a click sound and is instantly sent to your emergency contacts, without making any noise.
    The e-mail to your emergency contacts will include the photo as well as your GPS coordinates and a link to a Google map so your contacts can pinpoint the precise location at which the photo was taken.