San Diego Real Estate Cafe by Krista Lombardi
Archive for the 'Daily Grind' Category
Will the Bank of America Program Cure the Housing Hangover?
The banks and the government are putting together programs in full force to cure the housing hangover that still lingers from 2005.
So here is yet another way to ease the burden of the 800 lb gorilla known as 3 million fatally delinquent mortgages that could turn into foreclosures, which would wreck havoc on the small simmering recovery we do have right now.
Bank of America announced a pilot program where they’re going to take 1000 of these folks, not a whopping number, and offer them a chance to rent out their homes. The program goes something like this: it’s by invite only so you can’t apply for it and it’s only going to be in Nevada, Arizona and New York for now.
A handful of delinquent homeowners will be offered a chance to rent their homes at a below market value if they sign their deed over to Bank of America. B of A will then work with local property Management Company’s to collect the rent.
What to Watch Out for When Renting Your Investment Property
Watch out, there is a new scam around town, the Apartment Owners Association is warning of a company called “Successful Rent” which is run by a lady named Sunny who is scamming rental property owners.
If you are a rental owner, watch out for a call from Sunny. Sunny calls owners who have vacancies and claims she has prospective tenants from out of the country looking for homes.
Do You Have a Loan With Bank of America? Discover a New Program for Lowering Your Payments
I know, I know, there is a large community out there saying, “These programs don’t help. It’s not enough money.” Well, there are a lot of 
programs right now to help underwater homeowners. And while some may not apply to you, another one could. So let’s hear it.
The new program is that some Bank of America borrowers may be in for principal reductions in amounts exceeding $100,000, according to the latest developments in the settlement the bank and four other large servicers made with state and federal regulators.
Of the five servicers participating in the settlement, BofA is going to be paying the largest portion of the total $25 billion settlement. We are looking at $3.24 billion to the government and $8.58 billion to borrowers.
The reduction is set to aid about 200,000 homeowners in the U.S. Again, I hear the naysayers saying that this is not enough, however if they actually roll out a good program then every little bit does count.
It does sound like BofA will make the program work, since it will prevent the bank from paying $850 million in penalties.
From Seattle to La Jolla, How’s the Coffee?
Although this blog is primarily focused on real estate, we love promoting San
Diego County and if it has to do with coffee too, even better!
So guess what?! In an annual competition hosted by a panel of experts and two separate cofee labs Bird Rock Coffee Roasters in La Jolla won the 2012 Micro Roaster of the Year award!
This is the first time that any roaster in the Sna Diego region has won this prestigious award.
$18 Million for the State of California?
On February 9, Attorney General Kamala D. Harris announced that California secured up to $18 billion for its distressed homeowners as part of a $25 billion national multistate settlement with the country’s five largest loan servicers. More than $12 billion will be used to offer short sales or write down loans over the next three years for about 250,000 underwater homeowners in California.
Relief will go to areas hardest hit by the foreclosure crisis within the first year of the settlement.
Although the actual settlement has not yet been released, the attorney general has stated that other financial benefits for California include $849 million for refinancing 28,000 borrowers who are underwater but current on their payments; $279 million restitution for 140,000 homeowners who were foreclosed upon between 2008 and 2011; $1.1 billion for unemployed homeowners, transitional assistance, and repairing blight; $3.5 billion to extinguish unpaid loans that remain after foreclosure for 32,000 homeowners; and $430 million to the state attorney general’s office for costs and fees. As part of a California guarantee, if the lenders fail to reduce principal balances by a minimum of $12 billion, they will be required to pay fines up to $800 million to the state.
Recent Survey Reveals Why Your House May Determine if You’re Single or Not!
A recent survey by Trulia revealed that while 63 percent of unmarried respondents said it doesn’t matter to them whether the person they date owns a home or rents one, 36 percent of women and 19 percent of men taking the survey said they’d prefer to date a homeowner vs. 2 percent of men and women who said they’d prefer to date a renter.
Yes, that is right, if you are a renter you are in the “undesireable” category, sorry to say.
Good News for Short Sales? Extra Extra Read All About It!
Short sales and good news? Is this an oxymoron…? 
There will soon be increased incentives paid for completed short sales, according to a spokesman for Freddie Mac.
So here are the stats: short sales skyrocketed dramatically since about 2006. Both Fannie Mae and Freddie Mac completed 112,935 of these transactions in the first three quarters of 2011, up from 107,953 in 2010 which is about double the numbers in 2008 and 2009 combined, according to their data.
Your Get Out of Jail Free Card for Real Estate
If you miss a mortgage payment, the lender has a right to foreclose — to sell your property and recover the loan amount plus foreclosure costs. However, lenders sometimes prefer to work out matters so that foreclosures can be avoided because a typical foreclosure action results in a $40,000 loss to the loan owner. If you can make up the missing payment and otherwise satisfy the lender it may be possible to avoid foreclosure. Not foreclosing is an act of forbearance.
This post is about not being foreclosed on, especially if you lost your job.
National Association of Realtors Versus New Housing Tax Legislation
The National Association of Realtors recently reported on legislation signed
into law that will be taxing housing to pay for the extension of the payroll tax, and maintain Medicare payments and unemployment benefits.
Despite the Association’s strong opposition to diverting housing resources to pay for non-housing uses which will increase in fees on mortgages and charges for lower downpayment loans are being used to pay for the extensions.
What is unfortunate is that these increases will translate into additional costs for home buyers and sellers, people who already pay a hefty sum of money to buy and sell their homes.
They speculate that this will divert fees needed to minimize the loss of the government-sponsored enterprises and investors.
The Scoop on the Government Refinance Program for Help
So as of December 1, 2011 they have made changes to the Housing Affordability Program. And while this has not been wildly successful over the course of the years, the changes are expected to have improved so that more people can be helped.
Nothing tried, nothing gained. So…what is the scoop?
- Starting December 1, 2011 authorized lenders may begin the loan
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