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. 

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

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.

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.

Help on the Way for Underwater Home Owners

A bill introduced in the Senate aims to remove barriers for underwater home owners looking to refinance. “The Helping Responsible Homeowners Act” would order Fannie Mae and Freddie Mac to waive fees and remove barriers that are keeping underwater borrowers from refinancing to lower mortgage rates.

The bill, authored by Sen. Barbara Boxer, D-Calif., has gained more momentum in Congress after Sen. Johnny Isakson, R-Ga., who ran one of the nation’s largest real estate brokerages, also signed on to sponsor it.

“The time to help struggling home owners is now while interest rates remain at near-historic lows,” Boxer says. “This legislation would help millions of responsible home owners who are making their payments, but are still struggling to make ends meet. By helping these home owners refinance at lower rates, we will put thousands of dollars back in the pockets of families and strengthen our economy.”

Secrets To Getting a Mortgage Even With Bad Credit

Getting a mortgage can be tough these days, even people with near-perfect credit have been rejected for loans. But for some lucky borrowers, things aren't so bad.

At a recent press conference, Federal Reserve Chairman Ben Bernanke said lending standards for mortgages have tightened so considerably that "the bottom third of people who might have qualified for a prime mortgage in terms of, say, FICO scores a few years ago, cannot qualify today."

one-in-four mortgage applicants was denied in 2010, up from about 18% in 2003, according to data from the Federal Financial Institutions Examination Council. And those are just the ones that apply, many discouraged potential borrowers don't even bother to apply anymore.  Yet, there is money to lend.

Most of the major mortgage underwriters have only returned to the more prudent standards of the days before the housing bubble. Now, according to Tuck Bradford, a branch manager with lender Mortgage Master, borrowers usually must meet four criteria in order to get a mortgage backed by Fannie Mae (FNMA, Fortune 500) or Freddie Mac (FMCC, Fortune 500), the two government-run mortgage giants:

• The ability to make a 20% down payment, plus closing costs.
• A good credit score. Borrowers usually need a minimum credit score of 620.
• Enough income to afford payments. The general rule of thumb: no more than 28% of your gross income should go toward housing costs.
• A loan-to-value ratio of 80%. Lenders want the home value to far exceed the mortgage balance because if a borrower defaults, the bank sells the home to recoup the loss.

In today's market, however, even having all four of these factors in place doesn't always guarantee that you will get a loan. But, for every client who gets rejected, there are those who have been much luckier at landing mortgage loans. And typically, they have turned to the Federal Housing Administration (FHA) for help.

Standards for these loans, insured by the FHA and issued by regular mortgage lenders, are flexible and aimed at making mortgage borrowing easier, especially for working-class Americans.
For years, the FHA had no minimum credit score requirement at all. Now though, it requires a minimum of 580 credit score to qualify for a 3.5% down-payment and 500 credit score for a 10% down-payment.

FHA is willing to overlook a blemish on a credit report, even a big one,  if other factors are favorable.
Do you have problem getting a loan, even though you have perfect credit? GO FHA!

Andre Plessis, REALTOR & Financial Educator
Los Angeles, CA
http://www.wealthcreationteam.net/

Are You Owed Money?

According to the National Association of Unclaimed Property Administrators, state treasurers currently hold $32.9 billion in unclaimed bank accounts and other assets. (You can search for unclaimed assets at MissingMoney.com .)

If your heirs don't know about these accounts, they won't be able to lay claim to them, and the money could languish. The U.S. Department of Labor estimates that each year tens of thousands of workers fail to claim or roll over $850 million in 401(k) assets. You can track unclaimed pensions, 401(k)s and IRAs at Unclaimed.com.

Facebook Launches Video Chat Feature

Video chatting is coming to Facebook through a deal with Skype, announced Mark Zuckerberg, Facebook’s founder and chief executive, at a news conference Wednesday.

Russell Haskins with Homes & Land Media told Inman News that he sees Facebook video chat feature a powerful tool for real estate professionals in landing new clients and reaching out to younger clients.

"I guarantee you people will be interviewing agents using this new tool, whether [agents] like it or not," Haskins told Inman News. "If you're not ready, they can click on another agent and call [that agent]. I think this is another [tool] separating tech-savvy agents versus those who are timid."

Other real estate pros say they see the value in the video conferencing feature for using with oversea clients or clients relocating from other states too.

To use the video chat tool on Facebook, you’ll soon be able to just click a button on your Facebook chat list or a friend’s profile page to connect. (A plug-in download will be required to make and receive calls.) Facebook’s new video conferencing tool does not allow for group chats and is not available on mobile phones. It currently can be accessed at facebook.com/videocalling, until it officially rolls out in the next few weeks.

Quote

"The best way to predict the future is to create it."
Peter Ferdinand Drucker
1909-2005, Political Economist and Author

Jennifer Aniston Sells Her Beverly Hills House for $37-38 Million

Jennifer Aniston has sold her Beverly Hills estate, which had been listed for $42 million,  for $37 million to $38 million.

Designed by Hal Levitt, the restored 1970 house sits on about an acre. The living space of nearly 10,000 square feet contains two living rooms, two kitchens, a gym, five bedrooms and 71/2 bathrooms. Outdoor amenities include a swimming pool, a spa, ponds, fountains, an alfresco living room, fireplaces and another kitchen.

Aniston, 42, starred this year with Adam Sandler in the comedy "Just Go With It," but she is still best known to TV audiences for her Emmy-winning role on "Friends" (1994-2004).
She bought the property in 2006 for $13.5 million, according to public records.

When you think about it she bought that house atthe high of the market, and made a hefty profit. That's how smart real estate investors are. They know how to purchase real estate, embellish their properties and sell them at a higher profit.

Andre Plessis REALTOR

To find out how to buy and sell real estate correctly, call 1-877-APPLYFREE

New Federal Program Offering Aid To Struggling Homeowners & It Doesn't Need to be Repaid.

For the nearly 4 million homeowners who have fallen behind on their mortgage payments, the federal government is offering a new remedy: free money to catch up on their loans.

The Emergency Homeowners Loan Program is the latest in the federal government's efforts to slow down the flood of foreclosures a necessary step to a full recovery in the housing market, says a Department of Housing and Urban Development official. For people who have lost their jobs, the $1 billion program offers loans of up to $50,000 that don't actually need to be repaid, if applicants meet certain requirements.

Rolled out by HUD and the nonprofit housing advocacy group NeighborWorks America, the program is making loans with far better terms than anything on offer at a local bank. The loans are interest-free. Payments go directly to the lender for a portion of the borrower's monthly mortgage, including missed payments or past due charges. And when the assistance period, which runs for up to two years, ends, 20% of the loan is forgiven with each passing year. In other words, for qualified borrowers who stay in their home for at least five years after the assistance period and who don't fall behind on their mortgage again, this money doesn't have to be paid back.

The program started last week and will take applications through July 22. To be eligible, homeowners must have lost income and be at risk of foreclosure due to involuntary job loss, underemployment or a medical or other economic condition; details on the application process are available online through NeighborWorks America.

Andre Plessis, REALTOR Los Angeles, CA

http://www.wealthcreationteam.net/

Should You Reduce The Size of Your Mortgage?

Emotionally, it feels good to reduce the mortgage balance, but as I’ve pointed out many times, what feels good isn’t always right.

Let’s say you owe $200,000 on your mortgage. You refinance, bringing $50,000 to settlement so that your new loan balance is just $150,000. Your new mortgage payment is lower than the old one, but it’s still due every month. If you lose your job, have a medical emergency or encounter any other financial difficulties, you might find making your new mortgage payment just as impossible to do as it was before, with the old mortgage. But if you still had that $50,000,  meaning, if you hadn’t given it to the banker when you obtained your new mortgage, you would now still have the ability to make mortgage payments for months, maybe even years.

As you can see, it doesn’t matter how small your mortgage balance or payment is if you don’t have the cash available to make this month’s payment. And that’s just one reason among many others not to prepay your mortgage.

5 Real Estate Scams

1. The Foreclosure Rescue Scheme

The Scam: “Rescuers” promise cash-strapped home owners that they can save their home from foreclosure. The rescue, which involves paying upfront fees, can take multiple forms, such as the perpetrator obtaining a new loan on behalf of the owner or by having the owner sign over the home’s deed and then rent the home until they can repurchase it. Eventually, the home owner loses the home, either to foreclosure or the fictitious rescue company.

Red Flags: With foreclosure rescue programs, borrowers are often advised to sign over the title of their house to a third party, become renters of their home, not contact their lender, or send mortgage payments to a third party, according to Fannie Mae, which provides fact sheets on mortgage fraud.


2. Loan Documentation Fraud

The Scam: This fraud involves numerous schemes in which a borrower provides inaccurate financial information — such as about their income, assets, and liabilities — or employment status in order to qualify for a loan with lower rates and more favorable terms. Occupancy fraud is one growing area: Borrowers say they plan to live in the property when they actually intend to rent it.

Red Flags: Documentation may raise suspicion if the employer’s address is shown as a post office box, accumulation of assets compared to the person’s income appears too high or low, the new house is too small to accommodate occupants, the person has no credit history, or the application is unsigned or undated, according to Fannie Mae.


3. Appraisal Fraud

The Scam: A faulty appraisal — saying a property is worth more than what it really is — is connected to many types of mortgage fraud. It entails manipulating or overstating comparables, market values, or property characteristics in order to obtain a higher appraisal. The higher property appraisal, which generates false equity, is done by falsifying an appraisal document or using an appraiser accomplice to obtain the higher value.

Red Flags: Be skeptical of appraisals that are dated prior to the sales contract, list comparable sales that do not contain similarities to the property or are outside the neighborhood, the owner is not the seller listed on the contract or the title, or a third party participating in the transaction orders the appraisal, Freddie Mac warns.


4. Illegal Property Flipping

The Scam: This entails purchasing properties and reselling them at inflated prices. These scams usually involve faulty appraisals and inaccurate loan documents. The property is then refinanced or resold immediately after purchase for an inflated value. The home is purchased at a higher price, often by straw buyers working with the “flipper,” and eventually falls into foreclosure.

Red Flags: Some key things to look for are rapid refinancing of a property; the seller recently having acquired the title or acquiring the title concurrent with the transaction; an appraisal that comes in too high; a property that was recently in foreclosure being purchased at a much lower price than its sales price; or the owner listed on the appraisal and title not matching the seller on the sales contract, according to Fannie Mae.


5. Short Sales Schemes

The Scam: Borrowers owe more than the current value of their home so they fake financial hardship and no longer make their mortgage payments. An accomplice of the borrower then submits a low offer to purchase the property in a short sale agreement. The lender agrees to the short sale, unaware that it was premeditated. The property, after being purchased at the reduced price, is then often resold at the home’s actual value for profit.

Red Flags: The borrower suddenly defaults on the mortgage with no workout discussions with the lender, an immediate offer is made to a lender at a short sale price, the short sale offer is less than current market value, or a cash back is offered at closing to the delinquent borrower (disguised as “repairs” or other payouts, for example) and is not disclosed to the lender, according to Fannie Mae.