The Home Mortgage Preservation Program is now Turbocharged enough to help high Los Gatos mortgages hopefully.

In May the government stepped up the pace to modify mortgages to stave off the 10–12 million potential foreclosures looming on the horizon.   This was to be done first, by allowing homeowners to qualify for modifications on a temporary basis.  650,000 homeowners are now in that process.

However, only 2000 have been approved for modifications through the program.

Request Loan Modification .PDF

Chase Loan Mod Docs .PDF

GMAC Financial Statement .PDF

“We now must refocus our efforts on the conversion phase to ensure that borrowers and servicers know what their responsibilities are in converting trial modifications to permanent ones,” said Phyllis Caldwell, the newly appointed chief for the Treasury Department’s upstart Homeownership Preservation Office, in a statement released Monday.

The MakingHomeAffordable.gov Web site will include links to all required documents and an income verification checklist, as well as explanations of how the trial and conversion processes work. The Homeowner’s HOPE Hotline, at (888) 995-HOPE, will provide direct access to housing counselors

The temporary modification idea was meant to allow the homeowner time to submit documentation the lender would review to potentially grant an approval.   This has caused much anxiety on the part of the participants as evidenced in the following quote.

“Now it’s up to the banks to do their part to convert borrowers to permanent modifications,” said Michael Barr, an assistant Treasury secretary. “Servicers to date have not done a good enough job.”

We just don’t know what penalty the participating lender is facing if they do not comply with the pressure.   Without proof of substantial numbers of permanent modifications there is a real sense that this will just be another case of hot air.

This will lead to MORE foreclosures that may well have been prevented if the homeowner had time to seek out alternatives like a short sale or deed in lieu of foreclosure.

“If we don’t see a big increase in the permanent modification numbers, then there’s something seriously wrong with this program,” said Alan White, a law professor at Valparaiso University. “I can only assume the number is appallingly low.”

The Treasury Dept. began to publish reports naming those institutions that were lagging which proved to increase the numbers of temporary modifications from 235000 to 650000 by the end of July.

It is likely there will be another attempt to list their names if the number of permanent modifications does not rise soon!  Not quite Turbocharged.

There are new guidelines, now in place, that servicers are not going to like very much.

This is directly from the HMP press release …

Top servicers will be required to submit a schedule demonstrating their plans to reach a decision on each loan for which they have documentation and to communicate either a modification agreement or denial letter to those borrowers. Treasury/Fannie Mae “account liaisons” are being assigned to these servicers and will follow up daily as necessary to monitor progress against the servicer’s plan. Daily progress will be aggregated by the end of each business day and reported to the Administration.

If you or someone you know needs to get on board, forward this link to them. http://makinghomeaffordable.gov/index.html

Here they will find…

• Links to all of the required documents and an income verification checklist to help borrowers request a modification in four easy steps;
• Comprehensive information about how the trial phase works, what borrower responsibilities are to convert to a permanent modification, and a new instructional video which provides step by step instruction for borrowers;
• A toolkit for partner organizations to directly assist their constituents.

I think this is a mess that still needs cleaning up… and I am hear to watch ‘em.

Do you remember that commercial?  Was it a Mr. Goodwrench add?   We now know we payed them then and bailed them out this year!  Payed both times.   Ugh!

Pay now or Pay Later?  That is the question in our mortgage market now…not  Shakespearean,  but profound considering….Should you jump?

Mortgage rates eased for the fourth consecutive week, hitting historic lows well below 5 percent this week, Freddie Mac said in releasing the results of its latest Freddie Mac Reports.

Rates on 30-year fixed-rate mortgages averaged 4.78 percent with an average 0.7 point for the week ending Nov. 25, down from 4.83 percent last week and 5.97 percent a year ago.

This is what we have been expecting and will lead to higher rates as the market change cycles.  Not to mention the 1.25T  the Federal Reserve is spending to buy mortgage backed securities from Freddie Mac and Ginnie Mae.

The program is going to continue through March 2010 which makes you wonder…Why are they delaying the inevitable?   The program was supposed to be finished up at the end of this year.   The answer is:  To keep the rates low.   Thank you for that.  What happens when the rates increase?

The Mortgage Bankers Association last month projected that 30-year fixed-rate mortgages will hit 5.4 percent next year, 6 percent in 2011, and 6.3 percent in 2012.   Inflation?

I would suggest buyers take this seriously.  Would you rather pay rate to a mortgage bank or a few thousand hard dollars now?

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650,000

That number represents 20% of eligible homeowners at least 60 days behind in their payments, according to the Treasury report. This is up from 16% a month earlier.

Despite the progress, housing counselors say the number of people falling into foreclosure vastly exceeds the ranks getting assistance. The number of filings hit a record high of 937,840 in the third quarter, according to RealtyTrac, an online marketer of foreclosed homes. That’s a 5% increase from the second quarter and a 23% jump over the third quarter of 2008.

The $75 billion Obama plan is “lagging behind the massive number of foreclosures that continue to pile up,” said John Taylor, head of the National Community Reinvestment Coalition.

But administration officials have said that the program, which was projected to help up to 4 million homeowners, is on track.  On Track?  Which track?  Becsude, if it”s the ‘railroad’ track..we are in REAL trouble.

The above excerpt is from CNNMoney‘s reporting and I have to say I don’t believe the Loan Mod scammers are going to go away soon enough for this to get markedly different anytime soon.

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Have you ever heard the term ‘a wet signature’?

Banks often want to see documents with the original signature called ‘a wet signature’  Often asked for when a notary was not required to witness the signature.    I have been using the Uniball 207 Gel Pen for over 5 years just for the slightly different color of the “ink”.  I had no idea it held a secrtet!!!!

The bank where you have a checking account..LOVES… this video.

Disappearing Ink Video

I usually go through several bubble packs a year.  You can probably get by with just a couple of these beauties!

I have no connection with the manufacturer or distributors..just wanted to give a consumer tip!

Frustrated, I asked my client where did you find these listings?   The answer was disappointing…another website.  I won’t share which one as I have found the data there to be poorly arranged and not current by any standards.   Figures!   I asked “Why would you go to another website to find a home when I have been sending you the most recent daily updates?”   I got another “figures” answer. …”I saw it on the web and they advertised on the TV news”.    Oh Gosh!  Not the web monkeys!

Many new websites and data exchanges have been popping up lately.  The problem with these other sites is that their data is third party.   They are built by web masters to capture leads that are then sold to the uninformed Real Estate agent looking for new business. These sites load from the same place your search is sourced from.  The one you set it up with your Realtor whom you probaly hired to find you the best home at the best price available.

Unfortunately, the web architecture does not have a true update process programmed in.  This allows for information to become old and irrelevant.    Much of the information is derived from Title records too.  If someone refinances their mortgage it will report it as a sale when it is “far from that”.   If you thought a home sold for $250,000 which was actullay in a million dollar neighborhood…good chance it did not REALLY sell.    Then there is the home that is $300,000 under market price….it actually sold 2 years ago!

In short,  all the homes available for sale were right here at their finger tips.   The data derived from this search tool is current, changes are updated by the minute and there is the capability to have any new results, based on the home search criteria, emailed directly to them.

The map search is the Best home search tool for many buyers.  This allows you to draw a line around a neighborhood and see only those results without being overwhelmed with a zip code search that will, invariably, return homes not anywhere near your desired neighborhood.   San Jose is rich in investors and fast, filtered results are paramount in being the first to find the best buys.

I hope I remember, the next time a meet a new client,  to share with them the dynamic web source for home buyers is right here.   Santa Clara County, Los Gatos, Cambrian, Blossom Valley, East Hills, Silver Creek, Milpitas, Fremont and Campbell etc… are included.   Cities in Merced, Stanislaus, Alameda and San Joaquin County are participating in the results found in this too.

Maybe I should post a bulletin on TV!

Wallpaper’s return has followed a decline in the popularity of faux finishes, noted Stacy Senior Allan, marketing director for wallpaper maker Thibaut Inc. Maybe one too many badly sponged walls convinced us to leave the wall decorating to the experts.

But like faux finishes, wallpaper adds a dimension that a plain coat of paint can’t, Allan noted. Especially in rooms without a lot of soft surfaces – dining rooms and bathrooms, for example – wallpaper adds softness and a layering effect, she said.

We talked to some leaders in the industry to find out the latest trends in wallpaper, and here’s what’s hot:

Tradition with a twist
Ages-old motifs are still around, but in oversized forms and surprising colors. ”Everything has gone large-scale,” said Paula Berberian, creative services manager for Brewster Wallcovering Co. Familiar designs such as damask and Jacobean prints are being blown up into bold proportions and rendered in unexpected hues or metallics.

The result is a less stuffy look that can work even in modern settings. It can be busy, though, so Lilly Sosic of the Brunschwig & Fils showroom in Beachwood’s Ohio Design Centre said wallpapers with oversized graphics might be best for areas where people don’t spend a lot of time – a powder room, for instance, or a foyer.

Or cover just one wall, suggested Gina Shaw, vice president of product development for York Wallcoverings. Not only is creating a feature wall a returning trend among designers, but it’s also a less costly way to bring interest to a room, noted her colleague at York, director of marketing LeRue Brown.

Sophisticated finishes
Texture adds a third dimension to many of today’s wallpapers. Thibaut’s Allan said improvements in manufacturing technology allow wallpaper to have raised textures and embellishments that weren’t possible earlier.

As a result, many of the new wallpapers enhance rather than dominate a room. ”Wallpaper used to be really ‘pay attention to me,”’ she said. Now it tends to play a supporting yet glamorous role.

Sand and tiny bead accents are popular, as are bits of bling such as crystals and pearls. Metallics are big, too, but don’t be scared away by bad memories of disco-era Mylar. Metallics now are more subtle, often used just for accents.

Eco chic
The world is wearing its Earth obsession on its walls. That means grass and leaf designs are popular, as is grass cloth, a classic look that’s making a comeback. It’s made of reeds, bamboo and other natural grasses, Berberian said, so it fits right in with people’s desire to decorate with renewable materials.

Spa blues and greens are strong from a color standpoint, as are other Earth-inspired shades. Brown remains popular, often paired with brighter colors.

’60s flashbacks
It’s a mod, mod world, at least for the people who missed the ’60s. The bold geometrics, pop art and bright colors that exemplified that groovy decade are in big demand among younger consumers, and that’s translating to wallpaper design.

Because many of the fans of ’60s design are young enough to be decorating dorm rooms or first apartments – or even their tween or teen bedrooms – the look is strong in lower-priced, repositionable decals. The peel-and-stick decals use an adhesive like the one used in Post-it notes, so they leave no residue when they’re removed.

Handcrafting
The renewed interest for handmade goods is apparent in wallpapers, too. Shaw thinks it’s an effect of the uncertain economy, an appreciation for things that are crafted thoughtfully and made to last.

Handmade wallpaper can be pricey, but more mass-produced wallcoverings have the look and feel of hand crafting. Berberian said many have raised inks, which give the illusion of hand-printing. Asian-inspired designs and line drawings or other simple motifs are common, too.

Such wallcoverings often include layered colors and small mistakes that make them appear handcrafted, Allan said.

Global influences
Our well-traveled society has shrunk the planet and brought the colors and designs of other cultures to Western walls. African countries and India are particularly strong influences in wallcovering design and in home decor in general, Berberian said.

You’ll see that in paisleys and ikat designs, elongated geometric patterns originally used in fabrics that have the appearance of having been stretched. Animal prints are strong, too, and you can even find wallpaper that resembles faux reptile skins so closely they almost look and feel real.

© 2009, Akron Beacon Journal (Akron, Ohio).
Distributed by McClatchy-Tribune Information Services.

This is right from the Bank of America Press Kit!!!! 

Bank of America’s Nationwide Homeownership

Retention Program for Countrywide Customers

Fact Sheet

§         Countrywide and state Attorneys General has cooperated in the development of a comprehensive home retention program to systematically modify troubled mortgages with aggressive solutions, including interest rate and principal reductions.

§         It is anticipated that the loan modification program in this agreement will result in an estimated $8.4 billion in permanent payment relief to an estimated 400,000 Countrywide borrowers nationwide.

§         In participating states, the agreement provides up to $150 million in payments to borrowers who defaulted early in their loan terms, while committing to a “soft landing” program to help borrowers who are unable to retain their homes with relocation costs.

§         Countrywide will begin its proactive outreach to eligible borrowers on December 1, 2008.

Formalization of Existing Commitments

§         Countrywide no longer offers “subprime,” “high cost” or “negative amortization” mortgages and has significantly curtailed no- and low-documentations loans.

§         Broker compensation will be limited to 4% of the amount borrowed.

§         Countrywide will retain, for at least one year following the acquisition of BAC, a minimum of 3,900 personnel to assist with loan modifications and other foreclosure avoidance measures.

§         We will continue to proactively seek delinquent borrowers and offer streamlined loan modifications and report the progress of this agreement on a regular basis.

Home Retention Programs

§         Beginning December 1, 2008, Countrywide will proactively contact subprime and Pay Option ARM borrowers whose loans are scheduled for an interest rate change. We will invite them to contact us if they believe they will not be able to afford the new payments.

§         Countrywide will not advance foreclosures for eligible borrowers for the time necessary to determine the borrowers’ interest in staying in the home and their ability to afford the new terms as well as the investor’s willingness to accept a loan modification.

§         Countrywide will waive late/delinquency fees for missed payments when modifying loans and will not charge modification fees to borrowers in the participating states.

§         When possible, Countrywide will waive prepayment penalties in connection with any workout or refinance, whether or not the new loan is originated with Countrywide.

Eligibility

Borrowers eligible for loan modifications under this program must have received a qualifying subprime mortgage or a Pay Option adjustable rate mortgage prior to December 31, 2007, and the property must be a 1-4 unit owner-occupied residential property. In addition, certain other requirements are set out in the program:

• The borrower is 60 days or more delinquent and the current loan-to-value ratio is 75% or higher;
• The borrower is current today but becomes 60 days or more delinquent at any time prior to June 30, 2012, and the loan-to-value ratio at the time of the modification is 75% or higher;
• The borrower has a subprime hybrid ARM and the borrower is current but reasonably likely to become 60 days or more delinquent as a consequence of a rate reset, and the loan-to-value ratio at the time of the modification is 75% or higher;
• The borrower has a Pay Option ARM and the borrower is current but reasonably likely to become 60 days or more delinquent as a consequence of a rate reset or payment recast based on negative amortization, and the loan-to-value ratio at the time of the modification is 75% or higher.

In addition, customers may be eligible for the early payment default benefit of this program if: (1) the customer has a Countrywide-originated first lien loan; (2) the loan was on or prior to December 31, 2007; (3) the customer’s primary residence is the property that secures the loan; (4) the customer has made three or fewer payments over the life of the loan (the borrower’s state may expand eligibility); and (5) the customer has either lost his home to foreclosure or is at least 120 days in arrears on mortgage payments.

Loan Modification Program Details

Countrywide will first offer eligible borrowers an FHA refinance under the HOPE for Homeowners Program. If not eligible for that program, Countrywide will offer these specific programs based on product type. 

Subprime 2-, 3- 5-, 7- and 10-Year Hybrid ARM borrowers will receive an unsolicited extension/restoration of the introductory rate for five years and an invitation to contact Countrywide for additional relief if affordability concerns persist. Borrowers who cannot afford the introductory rate will be considered on a streamlined basis for a five-year interest rate reduction to as low as 3.5% (based on the affordability equation) and a conversion to a fixed-rate mortgage at the end of five years.

Pay Option ARM borrowers accepting a streamlined loan modification option will have the negative amortization feature eliminated from their loan. The mortgage interest rate will be reduced to as low as 2.5%, and the loan will be converted into either a fixed-rate mortgage or a ten-year interest-only loan. For single property owners who currently have no equity in their homes, Countrywide will write-down the principal balance to as low as 95% of the current value of the property to restore an equity position.

Are you a homeowner planning on moving up to a bigger or more expensive home? Here’s a guide for planning the transition in today’s foreclosure heavy market.

Figure out how much your current home is likely to sell for.
Have your real estate professional conduct a comparative market analysis. “Be realistic about pricing the home so it moves quickly,” adds Sandy Guralnik, a broker with Coldwell Banker United in Charlotte, N.C. This will help you avoid a long gap between when you buy your new home and sell your old one.

Consider the market.
If you have only been in the home two or three years and made little or no down payment, you might not have enough equity to sell at a profit in today’s soft market. You might even owe more on the mortgage than the home is worth.  This is far to common in the current foreclosure heavy market.  On the other hand, if your home has appreciated well, it might be easier to move up to a bigger and better home than ever before!  Especially in Cambrian Park, Santa Clara and most of San Jose.  Cupertino has consistantly bucked the market recently.

Consider your finances.
Your overall debt picture is important if you plan to move into a larger, more expensive home. In addition to a higher mortgage, you’ll likely have higher utility, insurance and property taxes as well. If you owe money on a home equity loan, you’ll have to pay that back when you sell the home, which will eat into your profit.

Get preapproved by a reputable lender.
The lender will tell you how much money they’re willing to lend you, which will tell you how much house you can afford. Then, figure out how much you’re comfortable spending. The two numbers are not necessarily the same, says Jan Miyasato, director of corporate and client services for Prudential California Realty in Pleasanton, Calif.

Determine your long-term housing needs.
Will you be starting or expanding your family in a few years? Will the larger home be as teen-friendly as it is toddler-friendly? Is there a place for a home office if one of you eventually works from home?  With the many economy issues this should play a large part in your decision process.

Be realistic.
Most people will not be able to move up from a starter home into their dream home. It’s a long-term process that occurs over several moves, says Debbie Wong, a certified residential specialist with Prudential California Realty in San Mateo, Calif. Plus, it’s harder to qualify for a loan if the jump in monthly payments is too big, she says. Not to speak of all the hoops many lenders are expecting you to jump through now.

Preview properties in your target price range and location.
Most importantly does that “Super Foreclosure Deal” really translate into a home. Look to see whether the homes match your trade-up goals.

Get your home on the market.
Moving up will go more smoothly if you are able to sell your home before trying to buy another. For one thing, many Sellers are leery of contracts in which the sale is contingent on the Buyer selling their current home. Foreclosures are held by Banks that are not willing to diminish there pool of potential buyers.  If they accept your offer they will be required to place the home on a pending status and other buyers will be considering it. Finances also are an issue.   Bridge loans to carry you from your current home to the next are almost impossible to get today.

Determine the best time for your move.
If you want to move in the summertime, start your other preparations early enough to meet that goal.

Figure out how much your current home is likely to sell for.
Have your real estate professional conduct a comparative market analysis.  This is important for Condo owners and Single Family Home owners.  “Be realistic about pricing the home so it moves quickly,” adds Sandy Guralnik, a broker with Coldwell Banker United in Charlotte, N.C. This will help you avoid a long gap between when you buy your new home and sell your old one.

Consider the market.
If you have only been in the home two or three years and made little or no down payment, you might not have enough equity to sell at a profit in today’s soft market with all the foreclosures out there. You might even owe more on the mortgage than the home is worth. On the other hand, if your home has appreciated well, it might be easier to move up to a bigger and better home.

Consider your finances.
Your overall debt picture is important if you plan to move into a larger, more expensive home. In addition to a higher mortgage, you’ll likely have higher utility, insurance and property taxes as well. If you owe money on a home equity loan, you’ll have to pay that back when you sell the home, which will eat into your profit.

Get preapproved by a reputable lender.
The lender will tell you how much money they’re willing to lend you, which will tell you how much house you can afford. Then, figure out how much you’re comfortable spending. The two numbers are not necessarily the same, says Jan Miyasato, director of corporate and client services for Prudential California Realty in Pleasanton, Calif.

Determine your long-term housing needs.
Will you be starting or expanding your family in a few years? Will the larger home be as teen-friendly as it is toddler-friendly? Is there a place for a home office if one of you eventually works from home?

Be realistic.
Most people will not be able to move up from a starter home into their dream home. It’s a long-term process that occurs over several moves, says Debbie Wong, a certified residential specialist with Prudential California Realty in San Mateo, Calif. Plus, it’s harder to qualify for a loan if the jump in monthly payments is too big, she says.

Preview properties in your target price range and location.
Look to see whether the homes match your trade-up goals.

Get your home on the market.
Moving up will go more smoothly if you are able to sell your home before trying to buy another in Santa Clara County. For one thing, many buyers are leery of contracts in which the sale is contingent on the seller finding a home. Finances also are an issue. You might be able to get a bridge loan if you’re unable to sell before you buy, but consider whether you can afford two mortgages for more than a month or two.

Determine the best time for your move.
If you want to move in the summertime, start your other preparations early enough to meet that goal.

http://www2.snapfish.com/launchslideshow/AlbumID=254298716/SUBSCRIBER_NAME=SNAPFISH/t_=150213807

Michael

http://www.MichaelRobertsHomes.com