My Activerain Blog on Windemere in San Ramon

Unless advised by their attorney, there is no reason to let your home go into foreclosure- and this is my opinion. I have heard sellers say many a times that realtors try to push for short sales only for the commissions. But knowing what I know, a Short sale is a far more viable option thee days, as compared to last year. I agree there are commissions involved but I have seen many times where the sellers have walked away happy and relieved from their burden.

Big Secret( or is it?)- Hardship + No Equity= Short sale candidate. Let's be very clear about this next point...Yes, there is damage to your credit. According to national experts, after a short sale, a person's credit will go down by 300 + or - points and then prevent them from buying using a government backed mortgage for up to 24 months. With a foreclosure, the credit is damaged for up to 4 years preventing someone from obtaining a government-backed mortgage.

Why are lenders more eager now to take such a huge discount on their mortgages?  Banks do not like bad loans. If they see an opportunity where they can sell the property without the huge loss of a foreclosure, they will do it. Some lenders report that if the home goes into foreclosure by the time the home actually closes with the new buyer, the lender will be lucky to net 50% of the original loan balance.

Also with the new government mandates, a primary residence qualifies under the Mortgage debt relief act and especially now California conforming to the federal mandate- it makes no sense to just let the house go into foreclosure. Now with the senate having voted for SB 1178-The Senate voted on extending anti-deficiency protections to homeowners who have refinanced "purchase money" loans and now are facing foreclosure. 

A loophole in the law had allowed California homeowners, already facing the possibility of foreclosure, to be sued by their lender for the difference between the value of the foreclosed property and the outstanding balance on the mortgage loan.

Currently, if a homeowner defaults on a mortgage used to purchase their home, the homeowner's liability on the mortgage is limited to the property itself.  While this law has helped protect borrowers since its inception in the 1930s, it does not extend the protection for purchase money mortgages to loans that refinance the original purchase debt-even in cases where the loan was refinanced to achieve a lower interest rate.  Resulting from years of low interest rates, tens of thousands of homeowners refinanced their mortgages.  Additionally, the majority of these borrowers did not realize that by doing so they were forfeiting their protections and becoming personally liable for the balance of the loan.

So with lenders now cooperating, new laws protecting homeowners- why is it that people still foreclose without giving it a serious thought? I have come to the conclusion that people do that because either they lack the knowledge on their rights or just have a No care attitude.I have an abandoned home behind my house in Windemere and one across the street that went into foreclosure- they could have atleast tried but just chose to give up. If you are in a similar situation, please use this blog or email me to get more information on the help that can be provided.

The word Short Sales raises an instant fearful reaction. Many agents still do not know how to handle them and the thought of getting a paycheck in maybe 4 months or never at all can deter many away. But this would be a blunder because short sales are here to stay and are not going away for a while. Get with the program.

The market depreciated beyond it actually should have and even though we are in a correcting market now, it will take a while for values to come back up. There are still many homeowners who are under water and will continue to remain there. Many homeowners feel that the market will come back soon, hoping that the glorious golden days of 2005-2006 will return with a vengeance.. you have another thing coming your way. Short sales are getting a little easier now.

Banks are learning very quickly that this would have to be the way to go or else they would have a lot more bad assets on their books. Taking a loss now than later, adding on the costs of foreclosures will definitely tip the scales. I must say that the worst of them all- Bank of America- is actually getting better with their new platform on Equator. The BPO gets ordered quickly. I have noticed that owner occupied homes are getting a faster response as opposed to non owner occupied. Wells Fargo is still the slower one of the lenders. I have one short sale going on right now, where they have taken nearly 2 months to order the BPO, after repeatedly blowing me off by saying that they have not received the authorization !

Here is my take on something else that is changing the dynamics. Just because Short sales are something agents want to keep away from, the regular sales that come on the market are inundated with multiple offers. What that does is push the prices up. Now if a short sale comes on with similar square footage, the comps getting pushed up higher and the banks now start demanding for the higher price stating that this is the current market value of the property.

So what is the advantage of a short sale, some may ask? For a seller it may be the right time to do it, especially now with the new government mandates. If it is your principal residence, then you may qualify under the Mortgage Debt Relief Act and with California now conforming, the seller can walk away from a burden they cannot afford. But if you refinanced the home, you lost the right to protected against a deficiency. The Realtor action committee is trying to get a legislation passed to protect sellers from this clause, as alot of people did not know that they would lose their rights if they refinanced their home.

For buyers, Short sales, in this current market do not propose any better opportunities. If you are paying current market value, forget trying to low ball offers and get them through. The banks are doing multiple BPO’s to determine the correct value of their assets. Why the buyers should continue to buy short sales? Because there is more short sale inventory in the market as opposed to REO’s or regular equity sales, so they cannot run from it & these homes are still 30-40% cheaper than what they were in the hey days.

Will things get better? Yes I think the streamlining of short sales is evolving. It is not hunky dory but it is not as bad as it used to be when neither the agents nor the banks knew what they were doing. Is it still challenging? Yes it is. But what is not? If you have been thinking of short selling your home, now maybe the right time to do it.

HOUSING MARKET REPORTS

Weekly Market Trend Reports for San Ramon
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Weekly Market Trend reports for Pleasanton

How many more horror stories do we have to hear about or situations we must face before sellers start to choose their agents more carefully? I am sharing some stories from the front lines of mishandled transactions; sellers not being aware of their choices and taking the wrong decisions.

Searching through my foreclosure lists I happened to see 3 names of someone I knew very well. Totally shocked I called them to ask them if they needed help. One of these people told me that they had been trying for a loan modification with their lender and they decided since they were not getting anywhere, they will stop making payments- just for someone to listen to them.They hired an attorney who promised to do a "legal audit" of their loan documents. The attorney never got back to them and they nearly had a coronary when I told them that their house was going to auction in 3 weeks. I pushed them to go their attorney's office and make some noise, which they did. By that time things were too late, so they had to file for bankruptcy to stop the foreclosure process.

The other person I knew had a similar story but some "Loan modification" experts told them that they should stop making payments so that their lender will put them on a priority list. Yes sure they put them on a priority list, they wre on the fast track program to a foreclosure. Now they are on a forebearance plan, after listening to my advice and hopefully will avoid foreclosure.

Another seller I know met with me through a social contact and he was going through the same difficulty. I tried to help him but I was hitting road blocks with him. Eventually I gave up because you cannot help someone who is not receptive to it. After 2 years, I see his house on the market with a broker I have never heard of. I made the call to him to find out what was going on, and he said he was afraid to call me because he could not afford to pay my commission !!!!!!!! My jaw dropped because he hired an agent who has not done anything to present that house in a manner that would make it appealing to the buyers; has not disclosed that the property has a filed NOD on it and the house is still stagnating on the market.

I recently listed and sold a short sale where the seller literally ran away from the country in fear. I had worked with him before to rent his house and he had trust in me. After months of going back and forth, just trying to convince him that short selling the home would be the right thing to morally, he agreed. I found an agent who had a cash buyer, presented the package to the lender and within 30 days received an approval and closed 10 days later.My seller's relatives were scaring him to the point where he believd that if he does a foreclosure the lenders would not come after him !! It took me a while to convince him that if he does a foreclosure- the lenders do have the right to come after him, as soon as he re entered the country.

There are so many misconceptions and false information floating around that scares sellers and they make wrong decisions.The worst is doing business with agents who have no clue what they are doing and are hired either because they are relatives or just cheap in their services.That should never be the criteria of slection.

I have sold so many homes in Windemere and other parts of San Ramon and I know precisely where to anticipate dirty games; which agents are sloppy and which ones will double end. And the part that boggles my mind is that sellers think that if one agent has 10 signs in the community, they must be good. Well, little does anyone realise that it is agents like myself who bring motivated buyers to sell their houses- while their so called hot shot agents stick a sign in the ground, use their house as a tool to get buyers and walk away as the hero. While the true hero who needs a pat on their backs walks away into oblivion. So, when you consider to sell your house- whether equity sale or short sale- don't get carried away with the fluffy marketing or false promises or the discount services. Make your decision based on the knowledge the agent has and also trust your gut instinct.

Just last week I receivd this letter from my past seller client- trust me- it was absolutely random and they sent me this letter from Las vegas.This letter made me so happy and proud of myself that my goal to make my clients happy was fulfilled...

Many Americans are making this decision to knowingly walk away from their homes. This is spreading all across the board and in our market, I am seeing this occurring more frequently in the higher end of the market.

In San Ramon, the estate houses in Norris Canyon Estates that used to sell in the mid to upper 2 Million dollars are now selling for mid 1 millions. Like a ripple effect, the recent recession will impact Americans for years to come, according to a study released Monday by the Mortgage Bankers Association (MBA).

According to Professor Joe Peek, America may unfortunately face the possibility of being caught in a vicious cycle. He said cutbacks in consumer and business spending are likely to contribute to a more anemic recovery, which in turn, will cause a deepened and prolonged weakness in spending and further undermine the recovery.

Below is a chart showing the price movement of high end properties over the last 2 years.

Here are the latest Pending and Sold San Ramon CA Listings Update.
This is data from April 20th to April 27th, 2010.


Since last Tuesday, April 20:

• 44 homes have gone pending out of which 11 are short sales.

• 28 homes have sold
  
  

These sales and pending properties range in the value of $155,000 to $3,500,000.

Click Here to See All Bank Owned Properties in San Ramon
Click Here to See Monthly San Ramon Housing Statistics
Click Here to receive Daily Foreclosure Alerts
Click Here for an Evaluation if you qualify to Short Sell Your Home

If you want more information on what is happening in specific sub divisions, please email    Rama Mehra REALTOR®, e-PRO, PSC, CDPD - CA DRE Lic. #01463395
For all your real estate needs in San Ramon, Dublin, Danville and Pleasanton.

                      

TO SEARCH HOMES FOR SALE IN SAN RAMON

Homes for Sale in San Ramon,$100,000-200,000
Homes for Sale in San Ramon,$200,000-300,000
Homes for Sale in San Ramon,$300,000-400,000
Homes for Sale in San Ramon,$400,000-500,000
Homes for Sale in San Ramon,$500,000-600,000
Homes for Sale in San Ramon,$600,000-700,000
Homes for Sale in San Ramon,$700,000-800,000
Homes for Sale in San Ramon,$800,000-900,000
Homes for Sale in San Ramon,$900,000-10,000,00
Homes for Sale in San Ramon,$1,000,000+

In the past few months I have been experiencing the "Really????" moments and want to share them, just for fun.

1. Listing agents thinking they are the new reincarnations of God-

• No one returns your phone calls;
  
• You are not informed on the MLS that the cut off date for offer submission until you finally connect with the pricey agents and then you find out that the cut off date passed 48 hours ago. When asked why it was not submitted on the remarks in the MLS, you hear- : I don't need to, I already have 20 offers. You can keep your offer to yourself".
• When asked what the seller really needs to see in the offer, you hear " I am not at liberty to say that"... well then what the hell were you hired for?
• Buyer being asked to pay 1% of purchase price as short sale negotiation fee- and why are you getting paid 3%? To get your manicure done on a sellers time ?

2. Buyers who swear that Zillow is more truthful than their own mother and I know better than you attitude-

• The house is priced at 650,000 but I am going to offer 425,000- why?? Because Zillow says it is worth that much
• Listing agents running expired ads on Zillow and me getting calls from my buyers asking why I am not showing them that house.
• Zillow tells me that there are a ton of foreclosures in...... city. Where?? I cannot find them
• Zillow says that prices will fall. But everything is selling over asking in my area Mr. Buyer....
• "I checked online and the mortgage rate is 4.5%"---- but I forgot to tell you that they got me hooked and then left me hanging dry without an approval and my deposit money is gone. But I was right and not you, my Realtor. Because I know it all and I am smarter than you !! Smirk

3. Companies being opened just to help people in trouble... "we are experts"

• We are experts at getting your mortgage principal reduced ( oh wow)
• We can get your loan modified and we only charge 3K upfront fee
  
• We can sell you qualified leads for $200 a piece, and( we made them up ourselves)
  
• We can sell your house and you and your belongings with it because we are just that great
  
• We can get your credit fixed, go ahead and foreclose and we will wipe your slate clean
  
• Stop making your payments to your lender because we have a great way of getting your lender to listen to you and Oh yes, we guarantee that your credit will be screwed for life, that's how awesome we are.
• We are experienced attorneys who can do an audit of your loan papers and we charge only $5000 for that in upfront fee, and in the end you will be left holding a bowl of scum.Life could not get better.
  
• Shady realtors offering commission back to sellers on Short sales- did you not know that this is illegal?

The Biggest "Really???" for me is Sellers- why is it that they see 3 sign posts of an agent and think that this is the Only person in the world who can sell their home???????? I am knocking on your door for business for months but you still call the person who has 3 signs in the community?? Well here is a Reality check for you- have you ever considered who TRULY sells your home??? It is successful buyer's agents like me !!!!!!!!!!! Putting a sign post in your front yard does not sell your house, it is professionals like myself who have qualified motivated buyers who put that SOLD sign on your house. Because we are the ones who KNOW what buyers want !

I am sure many of you readers have these "Really??" moments and I had a great time sharing mine.

• The much awaited HAFA- Home Affordable Foreclosure Alternative- provides opportunities for homeowners who can no longer afford to stay in their home but want to avoid foreclosure to transition to more affordable housing through a short sale or deed-in-lieu of foreclosure.

HAFA, which is part of the Home Affordable Modification Program (HAMP), aims to help homeowners who are unable to qualify for a loan modification under HAMP by providing them with the option to pursue a short sale or deed-in-lieu.

Under the program, financial incentives are provided to servicers and borrowers who utilize these foreclosure alternatives. The Treasury Department released HAFA guidelines on November 30, 2009, but participating servicers were not required to implement the program until April 5, 2010. That deadline is now here.

Many Realtors say that the employees of many servicers have not yet heard about the program, making it clear that many servicers will not be rollin gout the Red Carpet just as yet. However, many servicers are ready, and hopefully this program will be a success.

According to the program guidelines, once a borrower is determined to be ineligible for a HAMP modification, the servicer must consider that borrower for HAFA within 30 days. Every potential eligible borrower must be considered for the program before the borrower’s loan is referred to foreclosure or the servicer allows a pending foreclosure sale to be conducted.

If the servicer determines that the borrower is eligible, the short sale or deed-in-lieu process will begin. Qualified borrowers will be given pre-approved short sale terms before the property is listed, and once an offer is made, mortgage servicers will have 10 days to approve or reject the sale. To encourage HAFA participation, the Treasury Department has raised financial incentives under the revised supplemental program in late March.

Borrowers are now eligible for $3,000 in relocation assistance, and servicers will receive $1,500 to cover administrative and processing costs for a short sale or deed-in-lieu completed under the program. In addition, investors will be paid as much as $2,000 for allowing a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders. This reimbursement will be earned on a one-for-three matching basis, and to receive the incentive, subordinate lien holders must release their liens and waive all future claims against the borrower.

HAFA does not apply to GSE loans and second lien holders are being encouraged to cooperate but there is no law mandating this acceptance. Major lenders and servicers have joined the program but as for now it does seem like major sevicers have signed on and smaller servicers are still not on board.

HAFA Consideration ( Excerpt taken from the 45 page HAFA document)

Each participating servicer must develop a written policy, consistent with investor guidelines, that describes the basis on which the servicer will offer the HAFA program to borrowers. This policy may incorporate such factors as the severity of the loss involved, local market conditions, the timing of pending foreclosure actions and borrower motivation and cooperation.

Servicers may not solicit a borrower for HAFA until the borrower has been evaluated for a HAMP modification in accordance with the provisions of Supplemental Directive 09-01 and any supplemental HAMP guidance. Borrowers that meet the eligibility criteria for HAMP but who are not offered a Trial Period Plan, do not successfully complete a Trial Period Plan, or default on a HAMP modification should first be considered for other loan modification or retention programs offered by the servicer prior to being evaluated for HAFA.

In accordance with the provisions of Supplemental Directive 09-01, a loan meets the basic eligibility criteria if all of the following conditions are met:

• The property is the borrower’s principal residence, except that the property can be vacant up to 90 days prior to the date of the Short Sale Agreement (SSA), Alternative Request for Approval of Short Sale (Alternative (RASS) or DIL Agreement if the borrower provides documentation that the borrower was required to relocate at least 100 miles from the property to accept new employment or was transferred by the current employer and there is no evidence indicating that the borrower has purchased a one- to four-unit property 90 days prior to the date of the SSA, Alternative RASS or DIL Agreement;
  
• The mortgage loan is a first lien mortgage originated on or before January 1, 2009;
  
• The mortgage is delinquent or default is reasonably foreseeable;
  
• The current unpaid principal balance is equal to or less than $729,7501;
  
• and The borrower’s total monthly mortgage payment (as defined in Supplemental Directive 09-01) exceeds 31 percent of the borrower’s gross income.

Pursuant to the servicer’s policy, every potentially eligible borrower must be considered for HAFA before the borrower’s loan is referred to foreclosure or the servicer allows a pending foreclosure sale to be conducted. Servicers must consider possible HAMP eligible borrowers for HAFA within 30 calendar days of the date the borrower:

• Does not qualify for a Trial Period Plan; 
• Does not successfully complete a Trial Period Plan;
• Is delinquent on a HAMP modification by missing at least two consecutive payments;
  
• or Requests a short sale or DIL. The date and outcome of the HAFA consideration must be documented in the servicer’s file.
  

If you or anyone you know who has been considering Short Sale as an option, please contact me for a private consultation. A Short sale may or may not be the right option for everyone.

It took a lawsuit for Bank of America to swing into action but is too little too late?? All the big announcements in the media and people getting excited that their bank is finally going to help but out of the millions of troubled loans on their file, they are going to help only 45,000 homeowners... are you kidding me?? Pulling the wool over the eyes is a forte with banks in our country.

Bank of America is introducing enhancements to its 2008 National Homeowership retention Program.Supposedly,innovative program enhancements, such as “earned principal forgiveness”, apparently address "the most critical concerns of their underwater, distressed customers." The program enhancements are designed to increase the acceptance rate of modification offers and the long term sustainability of these solutions, balancing the needs of customers and the interests of mortgage investors.

Here are the requirements:

* For most AT RISK borrowers.
* Must be 60 days late.
* Focus on sub-prime, pay option loans.
* Loans must be at least have a 120% LTV. They have to be at least 20% upside down.
* Earn over 5 years. Over 5 years the negative equity will be ‘forgiven’
* BoA has 1,000,000 delinquent loans…and this program may ‘help’ 45,000

Excerpts from a Bank Of America release:
Bank of America developed and launched the NHRP in 2008, in cooperation with state attorneys general, to provide assistance to Countrywide borrowers who financed their home with certain subprime and Pay-Option adjustable rate mortgages (ARMs).

Bank of America removed these from the Countrywide product line upon acquiring Countrywide in July 2008. These new components of the agreement apply to certain NHRP-eligible loans that also meet the basic qualifications for the government’s Home Affordable Modification Program.

They include:
• A first look at principal reductions in calculating an affordable payment through an earned principal forgiveness approach to severely underwater loans
• Principal forgiveness through a reduction of negative-amortization on certain Pay-Option ARMs
• Conversion of certain Pay-Option ARMs to fully amortizing loans prior to a recast
• Addition of certain prime 2-year hybrid ARMs as eligible for the NHRP mortgage modification programs
• Inclusion of Countrywide mortgages originated on or before January 1, 2009, as eligible for modifications under the terms of the NHRP
• A six-month extension of the term of the NHRP program to December 31, 2012

My question to Bank of America is on their criteria for calculations. We all know very well how wonderfully the HAMP program worked with calculations that actually turned up with higher payments for borrowers looking for a loan mod. If here is going to be a conversion from Pay Option Arms to fully amortized, the payments are bound to ocme in higher. Include impounds and we have an unaffordable payment. Then what??

The program will assist people who are atleast 60 days late. Is this another call to homeowners to get delinquent on their loans for someone to give them an ear? What about the homeowners who are current on their payments but barely so- this is the green light for them to stop making payments. I need to get more specifics rather than the vague outline before I can go all out to talk about my thoughts. In what little I have learned, this is another drama in the sequence of many to make a fool of people. if you really want to help BofA, then take a knife and slash across the principal for all customers, especially the ones who were sold these risky products. Oh and while you are at it, tell me your action plan for all the mortgage brokers who sold these products to unsuspecting consumers and made hefty rebates from you.

New Obama Treasury Department program PAYS homeowners to avoid foreclosure..and do a short sale. In an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their homes. Now it will take a new approach: paying some of them to leave.

This latest program, which will allow owners to sell for less than they owe and will give them a little cash to speed them on their way, is one of the administration's most aggressive attempts to grapple with a problem that has defied solutions. Will this open another can of worms? I think it would.The administration is not understanding that paying the homeowner $1500 for help with relocation costs opens us to more fraud. The banks are not that motivated on short sales. We all know the scenario with the infamous One West story.Giving the second lien holders a $1000 incentive to release the lien- really???

More than five million households are behind on their mortgages and risk foreclosure. The government's $75 billion mortgage modification plan has helped only a small slice of them. Consumer advocates, economists and even some banking industry representatives say much more needs to be done. Rather than giving TARP to banks, we could have stopped the systemic bleeding by giving a principal reduction to homeowners right at the onset.

For the administration, there is also the concern that millions of foreclosures could delay or even reverse the economy's tentative recovery - the last thing it wants in an election year.Taking effect on April 5, the HAFA program could encourage hundreds of thousands of delinquent borrowers who have not been rescued by the loan modification program to shed their houses through a short sale. Lenders will be compelled to accept that arrangement, forgiving the difference between the market price of the property and what they are owed. A lot of the lenders have signed up but my skepticism comes into play because the lenders were mandated to the HAMP program too but it has proved to be a failure.

Part of the new HAFA program is that the lenders CAN'T Go after deficiency judgments. And....they can NO LONGER request that the seller sign a promissory note...or cash at closing. A massive shift will take place April 5th once the new HAFA Guidelines are in place. I really think the government needed to mandate for the states to conform to the debt relief act. California does not conform and a seller will be responsible to pay the state taxes fo debt relief. Then comes the issue of insolvency and with the rise in strategic defaults, how are the homeowners going to protect themselves from paying these state taxes?

"We want to streamline and standardize the short sale process to make it much easier on the borrower and much easier on the lender," said Seth Wheeler, a Treasury senior adviser. Under the new program, the servicing bank, as with all modifications, will get $1,000. Another $1,000 can go toward a second loan, if there is one. And for the first time the government would give money to the distressed homeowners themselves. They will get $1,500 in "relocation assistance."

Should the incentives prove successful, the short sales program could have multiple benefits. But the biggest question in my mind is that will this be a successful program or would it fail like HAMP.. For the borrowers, there is the likelihood of suffering less damage to credit ratings. And as part of the transaction, they will get the lender's assurance that they will not later be sued for an unpaid mortgage balance.Under the new federal program, a lender will use real estate agents to determine the value of a home and thus the minimum to accept. This figure will not be shared with the owner, but if an offer comes in that is equal to or higher than this amount, the lender must take it.I am looking forward to see how proactive the lenders will be on this mandate or will they find another escape hatch..

When I migrated to this country, I was told and experienced the mystical Glass ceiling effect. I could work as hard as I could but being brown skinned held me back from achieving the levels of success that I wanted to.

I have now experienced this in my RE career as well and this blog is to take a poll and opinions of my readers.In my business I have now begun to feel that I am not being chosen or being sidelined in many cases just because of the color of my skin- because honestly, with the level of honesty, integrity, knowledge and experience I bring to the table I see no other reason for being pushed over to the side.I am speaking out, and many Realtors talk about it in private conversations, but no one has the guts to address this issue in a public forum.

The ironinc part of this whole effect is the fact that people from my own country choose to pass me for an agent with a different skin color !! I also understand that consumers from my subcontinent have a lack of trust in Real estate agents and that too of their own ethnicity. I hear the same from Asian agents. Our own people do not give us business and instead choose another nationality.It may sound absurd to many, and I thought about it too but the more I delve into it the more I see it happening all around me.

My question to consumers, with the utmost respect is, why do you choose not to support your own people? We understand your cultural background, your aspirations, your desires, your reasoning. Why is it that someone from my country would feel I am a thief, like they see RE agents back home? Is it the baggage of distrust you bring from your country of origin and project it to your current surroundings? And why is it that when you use our services that you feel you can treat us with the highest level of disrespect? I have questions in my mind and I feel the burning need to find answers.

I am one of the very successful agents in San Ramon, not that I am tooting my own horn- but I still feel a block in the path of my career which stems from ethnic discrimination, coming mostly from my own people.I hear this from many of my Caucasian colleagues that they feel like outcastes in predominantly ethnically diverse communities. They too have mentioned that when they meet people from other cultures they are treated with distrust? Is it just a general distrust for our breed or is it conditioning from their roots or what is it?? I say unabashedly- I am strong, knowledgable, educated, honest, upfront and sincerely involved in being the trusted advisor for my clients- then why is it that an inexperienced agent ( with a different skin color) gets to chip away at my clientele just because of his skin color?

I would want to believe that this is a figment of my imagination but the more I experience it, hear about it the more I am inclined to believe it.Dear readers, what is your take on this?

What can you do to complain about a servicer or lender not following the federal Home Affordable Modification Program (HAMP) guidelines?  Here are the necessary steps and procedures, according to the CAR.  You should note the HAMP-complaint process includes GSE (Fannie and Freddie) and non-GSE loan modifications and the more recently released guidelines for Home Affordable Foreclosure Alternatives Program (HAFA) (short sales and deeds-in-lieu).  Note that the HAFA guidelines go into effect April 5, 2010, although servicers/lenders may implement them sooner. 

Counselor Escalation Process 
If you believe a servicer is incorrectly interpreting HAMP guidelines, take the following steps:

Step 1: Escalate the Case to Senior Management at the Servicer Shop
First, work through your normal contacts and channels with the servicer. If that does not resolve the issue, elevate your concern to a senior manager within the servicer's organization.

Here are examples of cases that represent valid reasons for escalation:

.  Servicer refuses to stop a scheduled foreclosure sale on a borrower's house while the borrower is being evaluated for HAMP.

.  Servicer charges up-front fees for the modification.

.  Servicer instructs the borrower to miss a payment.

.  Servicer claims that they are waiting for information or guidance from Treasury (i.e. Treasury is causing the delay).

.  Servicer advises the borrower to intentionally misrepresent their personal or financial information.

.  Servicer says they are not participating in HAMP, but the loan's investor is a GSE.

.  Servicer says borrower doesn't qualify, but counselor has reason to believe that the borrower is eligible. 
 
Step 2: Contact the Appropriate Escalation Team
If escalating to senior management does not resolve the issue, escalate the issue using the following contact table:

INVESTORS  DETERMINE IF LOAN IS GSE-OWNED  CONTACT INFORMATION 
Fannie Mae Loans  www.FannieMae.com/
LoanLookup  Phone: 1-800-7FANNIE
resource_center@fanniemae.com
 
Freddie Mac Loans  www.FreddieMac.com/
MyMortgage  Phone: 1-800-FREDDIE
borrower_outreach@freddiemac.com 
Non-GSE Loans  -  HAMP Solution Center
Phone: 1-866-939-4469
Fax: 1-240-699-3883
escalations@hmpadmin.com 

Gather the necessary case information and borrower consent.
If your Realtor or Broker is assisting with your file, you will be required to provide the escalation team with a written authorization  authorizing the escalation team and the servicer to share the your personal financial information with your representative. The written borrower authorization must be received by the escalation team before status information can be shared with your Realtor. Additional instructions are available as needed from the escalation team.

The inquiry information that a counselor will need to supply for a status includes the following:

.  Homeowner's Name

.  Property Address

.  Servicer Name

.  Servicer Loan Number

.  Foreclosure Date (if applicable)

.  Counselor Name & Organization

.  Counselor Email

.  Counselor Phone

.  Counselor Relationship to Homeowner

An escalation specialist will work with the servicer regarding the case and seek to provide you with an initial status within four business days of receipt of the requested inquiry information and borrower authorization. If the servicer is unwilling to comply with program guidance or the escalation team identifies systemic non-compliance, the escalation team may report the servicer to the Making Home Affordable Compliance team. 
(Source: https://www.hmpadmin.com/portal/resources/escalation.html)

------------------------------------------------------------------------------------------------------------------------BROKER LIABLE FOR CHARGING UNEARNED FEE

A broker must perform a specific settlement service to charge a $149 "administrative brokerage commission" fee under the Real Estate Settlement Procedures Act (RESPA).  That was the recent decision of a federal district court in Alabama in the case of Busby v. JRHBW Realty, Inc. (Case No. 2:04-CV-2799-VEH).  This decision serves as a good reminder for REALTORS® to refrain from charging unearned fees under RESPA.

In this case, a seller in Jefferson, Alabama agreed to pay the real estate broker a five percent commission.  However, during the closing and settlement, the broker also charged the buyer a $149 "administrative brokerage commission" (ABC) fee in connection with a federally-related mortgage loan.

The buyer paid the $149 ABC fee, but then sued the broker and succeeded in obtaining class action status for over 30,000 consumers.  The buyer claimed that the broker performed no services for the $149 ABC fee.  According to HUD, RESPA prohibits an unearned fee, such as when a "service provider charges the consumer a fee where no, nominal, or duplicative work is done."

In response to the buyer's claim, the broker argued that the ABC fee was for an array of services, including overhead expenses, regulatory compliance, technological enhancements, and additional commission.  The court, however, agreed with the buyer.  The court observed that the array of services listed by the broker were not settlement services because they did not occur at or before the closing, and any direct benefit to the buyer was negligible.  The court also pointed out that, as additional commission, the $149 ABC fee would be a duplication of the percentage commission already charged.

What happened to the market?? The houses that we could not give away, now have multiple offers. Over bidding , crazy offers, no appraisal contingencies seem to be the name of the game. Windemere is not the stand alone phenomena, everywhere you go it is the same story. Can anyone tell me what the hell changed?

I am an expert at writing atleast 10 offers a week for my buyers and only 5% of it sticks. My conscience and my sanity tells me to stop my buyers from over bidding on houses.The economy is still not on the mend, jobs are being lost and in the real estate market it seems like an uncontrollable wildfire. My listing on Allanmere drive got multiple offers, went pending and then I started to receive calls from agents to offer way more than asking.It won't appraise, my mind said, but hey I am not an authority on appraisals, am I ??? The appraisals too are all across the board...

In this market you need to be a cash heavy buyer if you want to be in play.FHA buyers are being kicked around like a soccer ball. Reason you may ask?? because of FHA guidelines and these buyers not having the cash resources to come into an ofer waiving appraisal contingencies- how do they even stand a chance? My two FHA buyers have now officially dropped out of the market after being rejected on every single offer for the last 8 months, and they even bid higher than asking !!!!!!!!

Market synopsis for San Ramon:

December 2009-
Days on Market (DOM) for the San Ramon area year to-date was around 67.
The median attached home price in San Ramon for December was $697,500.
As of the last day of December there were 48 active homes in San Ramon.

January 2010-Feb 2010-
As of today, there are only 64 detached homes for sale.
Days on market(DOM) is 34
Median sales price range is $ 739,000- $750,000
Average Sales price range is $786,819 to $796,061
At current selling rates this means there is approximately 1 month of inventory in San Ramon remaining.






(If you know of someone who has been waiting to sell, this maybe the best time to do so.Please contact me at 925-698-1815. If you know of someone who is going through financial difficulty and need to understand their options, please have them contact me for a private consultation.)

When a lender agrees to accept less for a property than is actually owed on a property this is called a short sale. When the lender agrees to accept the short sale they have a few options. They can choose to accept the loss, as a tax write off for themselves. Lenders offen do this when they have large profit quarters.

When lenders are not profitable they seek judgments and they want the seller to pay the tax burden. When the lender decides that they do not want the tax write off themselves they agree to the short sale and they issue a 10-99 c to the seller for the difference between what they owe on the property and what it sells for. The IRS has recognized that this is a major issue those who cannot afford their primary home are being taxed for money they have lost. This is a lose- lose situation.  

What is the IRS doing to correct this problem of taxation?
The IRS reassured homeowners that, although mortgage workouts and foreclosures can have tax consequences, special relief provisions can often reduce or eliminate the tax bite for financially strapped borrowers who lose their homes.
What options does the IRS offer.
1. Prove insolvency and be released from the debt partially or
completely ( primary residence only).
2. Payment plan to pay the tax back over time
3. Settle the tax debt for less than the full amount.
What does it mean to be insolvent - Simply put you can prove that that your liabilities (debts) are more than you assets (what you own). Go to IRS.gov includes a variety of information, including a worksheet designed to help borrowers determine whether any of the foreclosure-related relief provisions apply to them. For those taxpayers who find they owe additional tax, it also includes a form they can use to request a payment agreement with the IRS. . In some cases, eligible taxpayers may qualify to settle their tax debt for less than the full amount due using an offer-incompromise.  

Can this be applied to investment properties or second homes?
The IRS cautions that under the law, relief may be limited or unavailable in some situations where, for example, part or all of a home was ever used for business or rented out.  

What happens when the house is sold short?
Borrowers whose debt is reduced or eliminated receive a year-end statement (Form 1099-C) from their lender. By law, this form must show the amount of debt forgiven and the fair market value of property given up through foreclosure. Though the winning bid at a foreclosure auction is normally a property's fair market value, it may not necessarily reflect its true value in some cases.You are advised to check these forms very carefully to make sure the Lender has passed on the correct tax burden.  

Question - What kind of tax consequences will I have if I sell my house short.
The Internal Revenue Service that indicates if this is my primary residence and that you are insolvent that the IRS may not make you pay taxes on these items. Please review form 982 from the IRS with your attorney or CPA.  

Question - Well if I am also going to have a tax burden in a short sale then I guess I should just let it go into foreclosure.
I can understand why you may think that foreclosure may be a better option.By allowing your property to go into foreclosure that does not guarantee that you will avoid a tax burden, however I see here that the IRS will wait until the property is sold at the courthouse or by the lender and use the current fair market value to determine your tax burden.  
Below are some terms and clarification of questions directly from the IRS you can read them for further understanding.  
1. What is Cancellation of Debt? If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances.When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the cancelled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.

Here's a very simplified example. You borrow $10,000 and default on the loan after paying back $2,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $8,000, which generally is taxable income to you.  

2. Is Cancellation of Debt income always taxable?
Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve:
· Bankruptcy: Debts discharged through bankruptcy are not considered taxable income.
· Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you.You are insolvent when your total debts are more than the fair market value of your total assets.Insolvency can be fairly complex to determine and the assistance of a tax professional is recommended if you believe you qualify for this exception.
· Certain farm debts:If you incurred the debt directly in operation of a farm, more than half your income from the prior three years was from farming, and the loan was owed to a person or agency regularly engaged in lending, your cancelled debt is generally not considered taxable income.The rules applicable to farmers are complex and the assistance of a tax professional is recommended if you believe you qualify for this exception.
· Non-recourse loans:A non-recourse loan is a loan for which the lender's only remedy in case of default is to repossess the property being financed or used as collateral.That is, the lender cannot pursue you personally in case of default.Forgiveness of a non-recourse loan resulting from a foreclosure does not result in cancellation of debt income.However, it may result in other tax consequences, as discussed in Question 3 below.

3. I lost my home through foreclosure. Are there tax consequences?
There are two possible consequences you must consider:
· Taxable cancellation of debt income.(Note: As stated above, cancellation of debt income is not taxable in the case of nonrecourse loans.)
• A reportable gain from the disposition of the home (because foreclosures are treated like sales for tax purposes).(Note:Often some or all of the gain from the sale of a personal residence qualifies for exclusion from income.) Use the following steps to compute the income to be reported from a foreclosure:
Step 1 - Figuring Cancellation of Debt Income (Note: For nonrecourse loans, skip this section. You have no income from cancellation of debt.)
1. Enter the total amount of the debt immediately prior to the
foreclosure.___________
2. Enter the fair market value of the property from Form 1099-C, box 7. ___________
3. Subtract line 2 from line 1.If less than zero, enter zero.___________
The amount on line 3 will generally equal the amount shown in box 2 of Form 1099-C. This amount is taxable unless you meet one of the exceptions in question 2. Enter it on line 21, Other Income, of your Form 1040.
Step 2 - Figuring Gain from Foreclosure
4. Enter the fair market value of the property foreclosed.For nonrecourse loans, enter the amount of the debt immediately prior to the foreclosure ________
5. Enter your adjusted basis in the property.(Usually your purchase price plus the cost of any major improvements.) ____________
6. Subtract line 5 from line 4. If less than zero, enter zero.
The amount on line 6 is your gain from the foreclosure of your home. If you have owned and used the home as your principal residence for periods totaling at least two years during the five year period ending on the date of the foreclosure, you may exclude up to $250,000 (up to $500,000 for married couples filing a joint return) from income. If you do not qualify for this exclusion, or your gain exceeds $250,000 ($500,000 for married couples filing a joint return), report the taxable amount on Schedule D, Capital Gains and Losses.  

4. I lost money on the foreclosure of my home. Can I claim a loss on my tax return?
No. Losses from the sale or foreclosure of personal property are not deductible.  

5. Can you provide examples?
A borrower bought a home in August 2005 and lived in it until it was taken through foreclosure in September 2007. The original purchase price was $170,000, the home is worth $200,000 at foreclosure, and the mortgage debt canceled at foreclosure is $220,000. At the time of the foreclosure, the borrower is insolvent, with liabilities (mortgage, credit cards, car loans and other debts) totaling $250,000 and assets totaling $230,000.
In this situation, the borrower has a tax-free home-sale gain of $30,000 ($200,000 minus $170,000), because they owned and lived in their home as a principal residence for at least two years. Ordinarily, the borrower would also have taxable debt-forgiveness income of $20,000 ($220,000 minus $200,000). But since the borrower's liabilities exceed assets by $20,000 ($250,000 minus $230,000) there is no tax on the canceled debt. Other examples can be found in IRS Publication 544, Sales and Other Dispositions of Assets, under the section "Foreclosures and Repossessions".  

6. I don't agree with the information on the Form 1099-C. What should I do?
Contact the lender. The lender should issue a corrected form if the information is determined to be incorrect. Retain all records related
to the purchase of your home and all related debt.  

7. I received a notice from the IRS on this. What should I do?
The IRS urges borrowers with questions to call the phone number shown on the notice. The IRS also urges borrowers who wind up owing additional tax and are unable to pay it in full to use the installment agreement form, normally included with the notice, to request a payment agreement with the agency

The nearly 7 year saga of Windemere will soon come to an end. Mixed feeling awash, sometimes I feel sad to see sales centre folks leave everytime a builder closes out a build out but at the same time I happy to see that we will see some stability here finally.

Windemere started back in 2002 in the Dougherty Valley. When I reminisce back to the time of 1999( when I moved to San Ramon) and 2001, this valley was a huge parcel of nothingness, just one winding road through hills and green pastures.I still remember driving through, sometimes very fast because there were no cops around(!!) and I would love every second of it. SLowly the landscape changed to a residential community with tree lined streets.

The first settlers came in, the world was now slowly becoming aware of this lovely sub division. By 2005 the demand increased an dprices started to go up and steadily climbed on an upward tick till end of 2006. Investors started descending upon the community, maybe in search of the gold mine....

But then the bubble burst and the investors who bought homes for flips, started to rent these homes hoping against hope that things will get better soon and before their ARM's adjusted, the market would be back up again. Little did they know that it was a pipe dream. Just as the market surged in Windemere by nearly 30-35% annual appreciation, it dropped just as bad because the investors started to dump their assets. It started with price cuts, went to foreclosures and the latest was an up tick in short sales.

The first Bank owned home that came on the market was on Hastings Way. Priced at $1,023,900 it sold for $975,000 after being on the market for 36 days.In 2007 there were only 3 foreclosures that came in the last quarter of the year.Over the span of 2008 came in 39 foreclosures in Windemere, possibly the darkest period of our community. With new homes still being released by builders and foreclosures on the rise, Windemere was on the verge of being derailed.On 11/2/2007, the person who bought a townhouse on Ashwell lane for 620K saw the value of the property plummet by nearly 25% in a matter of a few months !

Then in February 2009, the change started happening.While in 2008 one could not give aay these houses, now the demand started to rise.A house on Knightsbridge Way, a bank owned listed for 855K sold for 882K in just 22 days. With a few random swings up and down, in June of 2009 the REO market seemed to be in demand.From tha point onwards, almost every REO sold for over asking price with a much shorter days on market span and with multiple offers.

The Short Sale span began from the first short sale in Windemere that came on the market in December 2006.This house sold after being on the market for 6 months. Then in 2007 we saw only 5 short sales; in 2008 we had 31 short sales listed and successfully closed; in 2009, 33 short sales closed and currently 44 pending waiting to close.What a change in the market dynamics...

Whether we like it or not and no matter the pain in dealing with banks, short sales are going to be the mainstay of our inventory in 2010. The new construction in Windemere is now primarily the higher price point homes, that in my opinion will see another short down tick in prices and will pick up again 3rd quarter of this coming year. THere are a lot of homeowners who are struggling with the banks to get loan modifications, so they can continue to stay in their homes.if the banks cooperate, we will see a stabilization in the next 24 months.

The demand for housing in this sub division is tremendous and for people who want to hang in, the times will get better. Maybe not as rapid of appreciation this time around, but then again who knows??

Wishing All a very Happy 2010 and may everyone find Happiness and peace in their lives.

I knew it, I knew it. I should have kept my mouth shut in the fear of getting a transaction jinxed but it did happen. I need an attorney who can go after Indymac, what they did was stupid and heinous and I am still shaking with anger and disbelief.

I have been representing a buyer on a short sale in Windemere.

• Buyer has been waiting for 5 months. 
• We had an approval from the first on oct 21st.
  
• Then the struggle begins with national city on the second.
• No answer since October from the second lien holder
• In this time frame national city gets bought out by PNC
• yesterday PNC comes up with a demand of 80K to settle the second. Are you kidding me PNC? Even if you sell it as a note, you will not get 50 cents on the dollar
• Buyer is being pushed into a corner to contribute 42K as the first lien holder had agreed to give 19,500 to the second and the agents were expected to come up with the difference(hic)
• And here comes the BOMBSHELL from the first lien holder-
  " We are going to have to take an approval from Wells fargo( the investor is .... and we do not have delegated authority).From what I am told, it can take up to 3 weeks to get an approval. This initially was mistakenly approved without going through to them first."

Are you freaking kidding me??????????????????? Oops I just shot you in the face by mistake and I should have shot your behind???? I smell law suit here. How can the banks be so incompetent that they play with people's lives so callously and we are letting them get away with it.

President Obama and his administration- awake or asleep?? This is the sector of the economy that needs grassroots digging to find out from people what they are facing in these times. I am so ticked off that I will even accept a federal take over of these bufoons !!!

Happy Holidays to All. The cold weather outside does not reflect what is happening in the Real Estate Market !! The market is hot, hot hot... This phenomena is taking place all across the board in almost all cities across The Bay Area.

Since I sell homes primarily in the Tri Valley area, specializing in San Ramon- I see tremendous activity which is extremely unusual for this time of year when I am out shopping or enjoying relaxed time with family and friends ! Open Houses have been packed with people, multiple offers are back with a vengeance and prices climbing up steadily over the past 3 months.

The REO Market

For some very odd reason, buyers are still hitting up REO's like they were going out of fashion. Folks, when an REO gets listed, please be aware of the many pitfalls you will face.

1. Atleast 50-60 offers from your competitors, an dthere may have been more but the listing agent got his/her ego trip out of 60 offers !

2. All cash Buyers are "King". The banks will even take lower offers if they are All cash, so you may land up offering more for the house but the Asset Manager is on their own trip to recover the money fast and quick.

3. No disclosures available- you will buy the property As Is.

4. If you are an FHA buyer, do not even consider writing an offer on REO's. This is out of ethics for me to say but it is the grim truth. With the higher offers coming in, and most of the time the desperate FHA buyer is the highest in their bid, the banks know very well that their property will not appraise for that high ! Hence FHA buyers with 2 appraisals on the table, stand slim to none chance of having a winning bid !

Short Sale Nightmares

If you do not have the heart of steel, do not enter this arena. Agents do not like selling short sales because their commissions get cut. I have personally closed a 760K short sale with a $1500 commission check, after waiting for 6 months for Bank of America to decide what treatment they wanted to mete out to all parties !!

Short Sales are 50:50 game if you are working with agents who have no clue as to what they are doing. 90% of agents who list or sell short sales just wade through the waters, blindly- hoping to hit land ! And I used to be one of them till I realised that these kind of distressed homes will become the staple of our business.

I decided to educate myself, to be the knowledgeable professional who is there is to help clients navigate this difficult situation. I have recently acquired the Pre Foreclosure Specialist and Certified Distressed Property Designations. I am not God that can make miracles happen, but my training has armed me with strategies and knowledge that will help my sellers and buyers close on these homes faster.

If you or someone you know who is in distress and needs to understand their options, please contact me at 925-698-1815 or email me to set up a confidential consultation to discuss exit strategies. Foreclosure should be the last option on the list.

For buyers, I will guide you on how to get your offer accpeted, navigate you to keep you away from trouble that listing agents might get you into and avoid some legal pitfalls that may land up in your plate.

Below is a Market Snapshot of San Ramon Detached and Attached Homes. Thank you for taking the time to read my email and truly from my heart- Have a Happy Holiday Season and May God Bless you and your families.

Dataquick reports today that the median price of Bay area homes is $390,000, up nearly 7% from September 2009. They report that the increase is due to adip in foreclosures and a rise in the number of high end sales.But at the same time 33% of the Fixed, A paper loans are in default in the 3rd quarter( 21% last year) and 16% increase in defaults on subprime loans( 35% last year).

In San Ramon, zip code 94582 the increase in prices and reduction is inventory is very similar.

Year to Date activity in Windemere has seen 129 sold homes reported on the MLS. Sales of New Homes sometimes get reported but not all the time. This data is based on what has been reported and I have broken it down into List Price vs Sold price vs Sold Month:

Activity indicated in the 2000-3000 sq ft homes. Here is the data :


Square footage 3000-4000 sq ft starting from January to date, 2009:


4000 sq ft plus activity:


Out of the 129 sales reported on the MLS, 36 homes were short sales and 20 homes were Bank owned homes.Out of the currently pending inventory of 53 homes, 39 are short sales and 2 are bank owned homes. We just have to wait and watch how many of the pending short sales will actually close.Given the fact that there are only 10 active homes on the resale market, the housing availability is in a bottleneck and will continue to tighten through the winter months. Demand is still very high, homes are flying off the market very quickly and prices are solidifying.
Prediction for 2010- NONE !!!! I have predicted things many times and had to eat crow, so I am flowing with the tide because this market is so crazy, I honestly do not know how it is going to pan out !

Thinking of Selling Your Home? Find out the Current Market Value
Are You Behind on Your House Payments? I am a Certified and Qualified RE Professional to assist you with your istuation.

Hardship, Foreclosure and the Homeowner
In an uncertain real estate market and troubling national economy, too many homeowners are faced with the immense challenge of maintaining their mortgage by living paycheck to paycheck, taking a large pay cut, having to pay unexpected medical bills, or losing their job entirely. In addition to perhaps having little to no savings and little available credit, the situation can be very grim.

There are options for homeowners feeling stuck in this situation and faced with certain foreclosure. Some may be able to sell their home with barely enough money to pay off their mortgage. Some may be able to sell their home with barely enough money to pay off their mortgage. Others may be able to refinance, however a majority of homeowners in this situation do not have enough equity to acquire a new loan.

Options include reinstatement, loan modification, forbearance, and the list goes on; however, many of these options are a drawn-out process that do little to ease the future financial pressure and foreclosure still looms even if put off for several months. Foreclosure is entirely avoidable, however, through the process of effecting a short sale.

A short sale is a real estate transaction in which the proceeds from the sale do not cover the balance owed on a loan or loans on the property. Lenders, quite simply, accept a discounted payoff on the loan and allow the sale to close escrow. The bank or mortgage lender will agree to discount the loan due to an economic hardship on the part of the mortgagor, and the homeowner will sell the mortgaged property for less than the outstanding balance of the loan, turn over the proceeds to the lender or bank, most often in full satisfaction of the debt.

A short sale is accomplished through negotiation with a bank’s loss mitigation or workout department on the part of the real estate professional, but the lender has the right to approve or disapprove any proposed sale. Main factors contributing to the lender’s decision are the borrower’s financial situation and the current state of the real estate market. 

It is neither the lender doing the homeowner a favor nor an easy way out for the homeowner, but a process enabled by the real estate professional nor homeowner when they are committed to avoiding foreclosure. It can be likened to a circus, under a not-so-big top in which the animals and acts do not seem inclined to respond to the skilled direction of their leader, the real estate professional.

The main goal of a short sale is to prevent foreclosure; however, the bank’s decision to move forward with a short sale is dependent on whether there will be a smaller financial loss taking the short sale or in the carrying costs associated with foreclosure. Typically, a bank will determine the amount of equity by determining a probable selling price from a broker price opinion (BPO) or appraisal, and decide to approve or deny the short sale based on the offered short sale price difference compared to the costs of foreclosure.

Banks will not accept all short sales, and a trained, knowledgeable real estate professional is paramount to the process of getting a short sale approved. Advantages for the homeowner are avoidance of a foreclosure on their credit history and some partial control of the monetary deficiency.In foreclosure a homeowner will receive a 1099A (Abandonment) which there is very little tax relief for. In a Short Sale a seller would receive a 1099C (Cancelation of Debt) Based in section 108 of the tax code found at www.irs.ca.gov with a letter of insolvency from a CPA and IRS form 982 there is less exposure to an ongoing tax liability from a 1099C over a 1099A

Additionally, the process of a short sale is faster and less costly than a foreclosure. Controlling that deficiency and paying off one’s debt via a short sale is a sure-fire way to sidestep immense financial hardship and get back on one’s feet. While a short sale does adversely affect a person’s credit history, the impact is far less than that of a foreclosure.

In San Ramon itself, since January 2009, there are 33 Active Short Sale Listings; 165 Pending Short Sales and 149 Sold Short Sales.Do Banks Accept all Short Sales? No. That is why it is critical from the correct presentation of the short sale package to the lender, to working with the lenders’ loss mitigation departments is our best weapon to keep the file moving towards approval.

Would a Bank Accept a Short Sale if the Homeowner is Current on Payments? The answer is, maybe. Some lenders will accept a Short Sale file for approval on loans that are not delinquent; however, this is very rare. Other lenders will not accept the file until the loan is delinquent. One way to find out whether your lender will accept a short sale file for approval on a loan that is current is by submitting a short sale file to your lender.

A short sale/ pre-foreclosure trained and certified real estate agent is central to the process of executing a short sale.They are responsible for identifying financially distressed homeowners as candidates for a short sale as well as compiling a file for submission to the lender in hopes of having the short sale approved through their loss mitigation department. The homeowner trusts the professional to work hard to avoid foreclosure via the short sale, and the professional is the linchpin on which the entire process hinges. Even more than just allowing the homeowner to “sell” their house and exit on their own terms, the real estate professional enables the homeowner to save themselves the embarrassment of excessive legal postings or the threat of a visit from the sheriff as well as helping them maintain their dignity in a time of financial hardship.

Weekly Market Trend Reports for San Ramon
Weekly Market Trend reports for Danville
Weekly Market Trend reports for Dublin
Weekly Market Trend reports for Pleasanton

All it takes me is an overseas trip to a third world country to start realising my blessings and thanking God for them. I would highly recommend all the pundits going crazy with their" The US is going down and everything is bad" negative raaga to go visit a far away country- that would show them what a great life we have here.

 

Why are we, as a society, becoming a bunch of whiners and complainers? I know when you lose your job, or your healthcare  or lose anything else that is important to you- the tendency is to cry about it but somewhere in the crying we forget to count our blessings.I just got back from India where people living in the cities are breathing the most toxic air, drinking the most infected water, living in abject poverty( or living in complete opulence), sleeping on the streets in the extreme heat or cold- yet they go about without stress !! This is the one thing that amazed me because at some deep level there is the confidence that things are ok.

When I landed at SFO, I almost kissed the ground !! I thanked God for bringing me back to my family, where I can breathe fresh air, see the blue sky, live in a beautiful environment, drink clean water and have 24/7 electricity and water !! I am not here lecturing anyone but sharing my thoughts and experiences- People, PLEASE be positive and thankful,things could have been worse. Do not forget the art of compassion for one another and do not lose the respect for one another. Life is good and will get better.

 

In a growing city like San Ramon and a heavy demand for housing, we currently have just 150 homes currently available for sale. Out of these 150 homes for sale in San Ramon, 46 homes are Short sales and 16 are Bank owned.I am quite sure that out of the 46 short sales there are atleast 50% pending but because the listing agents want to play games by not marking it pending, there really is lesser inventory than the numbers show.

As for the pending homes in San Ramon,264 homes are pending YTD. Out of these 163 are Pending short sales !! Astounding numbers that shocked me too. 26 bank owned homes are pending as well, with an average of only 14 days on the market as opposed to the short sales with an average days on market being 45 for detached homes and a lot higher DOM for condos and townhouses.

Here is what the Windemere market looked like till last week:

Here is one example of a home in the Saville community that sold today. As you can see that the plan 3 in the resale market just went up in price from what the builder just sold:

If you have any questions about homes that are available for sale or have sold in San Ramon, please feel free to contact Rama Mehra @ 925.698.1815 or via email.
Homes For Sale in San Ramon, $100,000- $200,000
Homes For Sale in San Ramon,$200,000-$300,000
Homes For Sale in San Ramon, $300,000- $400,000
Homes For Sale in San Ramon, $400,000- $500,000
Homes For Sale in San Ramon, $500,000- $600,000
Homes For Sale in San Ramon, $600,000- $700,000
Homes For Sale in San Ramon, $700,000- $800,000
Homes For Sale in San Ramon, $800,000- $900,000
Homes For Sale in San Ramon, $900,000- $1,000,000
Homes For Sale in San Ramon, $1,000,000+

The Housing market in San Ramon has heated up so much that I think its time for me to pack up for the year and go for an extended vacation !!!!!! There are so many cash buyers writing offers well over asking price, how does anyone really compete?? I just wrote an offer on a property in Windemere that came on the market for a ridiculous price of $623,000. After writing $110,000 over asking, my buyer still got beat out by a all cash buyer who paid a lot more for the same house.

It is difficult for the buyers to comprehend what happened to the market ! For me too buyers, and this is great news for sellers. Unfortunately for many buyers who check comparables and make their offers based on that, are being outpaced by the pace of the markets recovering climb. The banks are not slowly showing Contra Costa county as a stable market on appraisals but they are still not giving full value for the homes. Hence buyers are coming in with the difference in the price an dthat is why all cash offers are getting priority over all others. I just Listed and Sold 165 Landsdowne Loop in Windemere for $499,000 and sold it for $545,000 in 2 days, and with 9 offers ! Where does this leave our FHA buyers?? I am now beginning to see listing agents writing in confidential remarks that FHA buyers are not welcome... quite outrageous but considering tough appraisal guidelines with FHA loans, it becomes extremely difficult to claim the value the sellers want.

Some homes, specifically short sales, are now closing and here is detailed information of closed sales from July 1st 2009 in Windemere, San Ramon

This new day and age in the history of America brings forth a new disease alongside the H1N1 virus- LOUSY APPRAISALS, short for 4 letter words that I cannot use on this forum. And dealing with the worst in the business, Bank Of America- I am today openly accusing them for using Landsafe and their hand in glove deal to screw over appraisals. These damn banks want the disease to spread and want to hold values artificially under the water.Give me one good reason why an appraiser will not use a higher priced active comp ON THE SAME STREET but use a lower priced active comp 1 mile away??????????? Do they have their head up their.........????? Large banks using cheap appraisers who will drive out 50 miles out of their area of business to give values on areas they probably have never seen in their lives

I am sipping my cup of tea in the morning and watching the news and the media( let me not start on them or I will surely tear my hair out) and Wall Street is reacting favorably to the news that July home sales jumped to a 2 year high. Selling homes everyday, we know how few homes there are on the market and how multiple offers are driving prices up. heck, I just sold one on a listing side with no appraisal contingency !! I don't think we have even one month of inventory in Contra Costa county and yet the banks are calling us a declining market?????????? Give me the explanation? Why and How?? This administration has tried to correct some problems but at the same time created morphed monsters that have taken on new identities.

WHo is regulating the banks and their appraisers? I called the appraisers boss to complain that he came in for 15 minutes, stayed outside for 10 minutes and only 5 min on the inside and came in 20K under value???? The boss tells me he cannot talk to me, I threatened that I would make a compliant against Landsafe with the department of RE appraisers and his attitude clearly indicated that he did not give a damn.... where should I go?? WHo should I complain to?? The last time Bank Of America did this to me on a deal 1 month ago, my buyer had to come in with a difference of 20K. Oh Oh and I forgot to tell you that it was a BofA property on short sale with their BPO coming in higher than their appraisal for the buyer !!!!!!!
This industry is inundated with goons, asses, thieves and smooth talking liars who are raping the public openly and I say the administration is equally responsible for the garbage being funnelled down the pipeline for us to tackle. We do have choices- as an industry that gets hit all the time, we realtors should raise hell on a national platform or drown in the garbage that piles upon us. Because if we are in a profession of assisting people with the largest purcchases of their lives, then we should have a say in making reforms. Please BANKS stop being the jerks that you are- ALWAYS

I am reeling from an email attack from a reader a few minutes ago. She accuses me that she has been reading my blog and I have given wrong information on my blog for 2 years. I have not even been on activerain for a year!! Why is it that I am being skinned on email because of the downturn in the market? Did I cause the downturn?

All the time I have been blogging,it is reporting what is happening in the market. Infact, it was after reading my blog and getting unofficial input from me, one of the new home community reduced their price and sold out in 3 weeks ! The reader tells me that State or Federal regulators should shut down real estate agents like myself for misleading people !! I am just reporting from the trenches and telling people what is happening.Right now, the market is so hot in Windemere, so am I going to get my behind kicked for saying so?? It may come down again, but can I predict? NO. None of us can. We only make short term predictions based on the current scenario.

I am not angry but perplexed at the rudeness, anger and absolute loathing from this person's email... I have met such wonderful people from this blogging platform, sold homes to people who connected with my thoughts and have formed solid bonds with my readers.

This person can bad mouth me and treat me like garbage on email, but in my mind, I have not done a disservice to anyone. I have probably been as honest and open as I could. Is there anyone else too who wants to slam me?? And all this because I sent an email out giving statistics on the current market- they were created with hard data and not something I conjured up with my imagination...