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Don't reduce your property insurance coverage to reflect lower home values

2009-07-03T22:32:00.000-07:00

Don't reduce your property insurance coverage to reflect lower home values
Experts say it costs more to rebuild than it does to start from scratch, so the market value of a house doesn't indicate the amount of insurance you need.

Reporting from Washington -- There are a number of steps every homeowner should take to lower the cost of property insurance. But reducing the amount of coverage to match today's lower values is probably not one of them.Because it costs more to rebuild than it does to start from scratch, the market value of a house is not a reliable indicator of the amount of insurance you need. Too little coverage and your policy may not assume the cost to return your place to its original condition if needed.
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"There has been a lot of noise lately around market values, but market value and the cost to rebuild are two totally different things," said Elaine Baisden, vice president of national property for Travelers Cos., the Hartford, Conn.-based property casualty insurer. "So lowering policy limits could leave you underinsured."Despite the downward spiral in housing prices, home repair costs increased nearly 4% nationally, according to Xactware, whose software products estimate building and repair costs. Marshall & Swift, an authority on building-cost data, says it can cost as much as 30% more to rebuild a house as opposed to building a new one.Reconstruction costs are greater because the process usually involves the demolition and removal of damaged property. On-site mobility often is limited by the need to work around existing landscaping, power lines and other buildings. There are no economies of scale like there are when building row upon row of houses. Then there's the issue of newer, often more rigid building codes that might have to be met.
Market value, on the other hand, is often influenced by factors that have absolutely nothing to do with the cost to rebuild -- the quality of nearby schools, for example, the local tax base or the proximity to rapid transit.Value also is affected by the cost of the land on which the house sits, and that is something you should factor in when considering how much coverage to carry.Typically, the building lot accounts for 25% of a home's value. But you can get a better reading from your tax bill, which usually separates the value of the land from the value of the house. You shouldn't use the property's assessed value to determine how much coverage you need, but you can use the percentage ratio of the lot to the total to at least get an idea of what's needed.Still, it's probably not a good idea to arbitrarily make these kinds of decisions without first sitting down with your agent and discussing your needs. The wrong choice could prove to be an expensive one, Travelers' Baisden said."Home insurance limits are in place to financially protect your family should something go wrong," she said. "If there's a fire or a significant weather event, you want to make sure you have enough coverage to rebuild your home in its entirety."How to saveHere are some other steps you can take to save money while still protecting what may be your most valuable asset.* Check your credit records. For years, insurers based their rates mainly on the location and age of the property and its distance from the nearest firehouse. Now, like mortgage lenders and other credit issuers, they "score" policyholders based on information in their credit histories.It's a controversial practice, but insurers maintain that insurance scores are highly predictive of risk. Some use scoring only when other factors suggest that you are likely to file more claims, but others use it more extensively as both an underwriting tool and a mechanism for setting rates.Whether you agree with the practice or not, it is important to pay your bills on time and make sure that there are no errors in your credit records.* Avoid nuisance claims. The more claims you file, the more you are going to be charged, even if the claims are legitimate. So use your coverage for its intended purpose -- to protect against losses from which you cannot recover on your own -- and take care of the minor incidents yourself.* Shop around. Prices vary from company to company. You won't be able to negotiate rates, but you may be able to lower your costs by comparison shopping. Premiums can vary substantially from one insurer to the next.Although price is important, there are other factors to consider when choosing an insurer. You want a company that's financially stable, and an agent who takes the time to answer all your questions. And make sure that the company isn't prone to cutting loose anyone and everyone who files a claim.You can check the financial health of the various carriers with rating companies such as A.M. Best and Standard & Poor's. To get an idea about service, talk with friends and relatives about their experiences, or consult consumer guides (such as Consumer Reports) that rate insurers every few years on readers' overall satisfaction with their companies.* Raise your deductible. A deductible is the amount you pay toward a loss before your coverage kicks in. The higher the deductible, the lower the premium.According to the Insurance Information Institute, an industry-supported nonprofit communications organization, bumping the deductible from $250 to $500 could cut your costs 12%. You could save as much as 25% by jumping to a $1,000 deductible, and up to 30% by going to $2,500.But since you will be self-insuring, be careful. Don't go so high that you don't have the cash reserves to cover your share of the loss.* Look for discounts. It may be possible to lower your costs by buying all your insurance from the same company. Some insurers will cut their premiums up to 15% if you buy two or more policies from them. But be sure that the combined price is lower than buying the same coverage from competing companies.Other discounts abound. You may get a break of up to 10% if you're a longtime policyholder, say, for six years or more. And if you are over 55 and retired, you may qualify for a senior discount under the theory that since you're now home more, there's less chance of a major loss because you will be there to catch the fire or leak before it gets out of hand.You usually can obtain a premium reduction ranging from 5% to 25% if you have protective devices such as burglar alarms or even deadbolt locks. Article By Lew Sichelman June 7, 2009 lsichelman@aol.com http://www.latimes.com/classified/realestate/news/la-fi-lew7-2009jun07,0,3514957.story

Is Mediation the Answer?

2009-07-03T22:29:00.000-07:00

Is Mediation the Answer?
By Jennifer Harmon
Foreclosures are costly to the borrower, servicers and the investors who take losses on the sale of those properties. It’s also expensive to the taxpayers in the communities where these foreclosures are taking place. Foreclosures drive down property value. They often result in an increased level of blight and crime, and property tax revenue decreases because of the decline in value.
The Obama administration is doing everything in its power to reduce foreclosures through the Home Affordable Modification Program. While many are focusing on the refi and modification components of the plan, the Center for American Progress says that mandatory mediation should be incorporated into that process to make sure that the people who are eligible for these programs will in fact get the assistance that they need.
The report, “It’s Time We Talked: Mandatory Mediation in the Foreclosure Process,” outlines how foreclosures can be reduced by as much as 75% if the federal government takes a more direct role in providing opportunities for mediation.
Philadelphia and Connecticut are two places that have had mediation programs in place for about a year now. About three-quarters of all cases that go through mediation are able to avoid foreclosure, according to Andrew Jakabovics, the organization’s associate director for housing and economics. “That really shows that there is an alternative to foreclosure that is beneficial to everybody,” he said. “I think it can be wrapped up nicely into the ongoing administration’s efforts.”
Mediation is simply a voluntary negotiation between two parties in the presence of a neutral third party. The important thing about it is that it’s voluntary negotiation. It’s not bankruptcy and it’s not a cramdown.
Mandatory mediation begins when a foreclosure notice goes out to both parties at the beginning of the process. The servicer and homeowner are required to appear at a particular time on a particular date for a mediation session.If a servicer is participating in a mediation session and feels like it is not beneficial and doesn’t think he will make more from settling than in foreclosure, the servicer never has to settle.
One of the potential pitfalls in the program is that borrowers who are eligible for HAMP are not necessarily getting the modifications under the program either because the servicers are applying the wrong numbers or they are actively steering borrowers to non-HAMP-compliant loans, said Mr. Jakabovics.
“One of the things mediation would do is simply say if a borrower in the process of getting foreclosed on goes to a mediation session, the servicer is there and says, ‘Look, you didn’t qualify.’ This gives the borrower basically an appeals process that is currently missing from HAMP so the borrower can say, ‘Here are my numbers. What numbers were you looking at?’ The servicer might go back and look at them and see if they can actually reach a deal.”
Given that the compliance checks on HAMP are several months out, the detailed checks are not likely to start until October. There are problems these compliance checks might not catch. “Certainly, come October if something gets flagged and is eligible for HAMP, but the borrower was not offered the modification, it does the borrower very little good if they are already out of their home,” said Mr. Jakabovics.
Getting borrowers and servicers together in the same room appears to have tremendous value. Mediation might be an ideal way to make sure the servicer is getting it right. They are not going to be making any more deals that are less valuable to them than what they would have gotten in foreclosure.

Home Sales Going Up, but Prices Should Continue to Drop

2009-07-03T22:26:00.000-07:00

Home Sales Going Up, but Prices Should Continue to Drop
By Brian Collins
Recent reports that home sales may have bottomed out appear to have stirred some optimism that the worst of the housing crisis could be over.
Unfortunately, house prices and loan performance are lagging indicators in a recovery — and this downturn has seen the biggest price drops and the worst loan performance since the Great Depression.
Historical patterns show that house prices will fall and defaults and foreclosures will continue to rise until there is an improvement in the job market. If the employment numbers start to increase in mid-2010, as many expect, the turnaround in prices and delinquency rates may not come until the first quarter of 2011.
Nevertheless, sales are expected to trend upward and that is an important development, according to David Berson, chief economist for the PMI Group Inc. in Walnut Creek, Calif. "It is the precursor to everything else improving. Sales had to go up first and that is happening now," Mr. Berson said.
The National Association of Realtors reported a 2.9% increase in existing home sales in April and the trade group is forecasting a major jump in sales during the last three quarters of this year. NAR economists expect home sales will rise to a 5.5 million seasonally adjusted annual rate in the fourth quarter, up 19% from the first quarter, as the $8,000 tax credit for first-time homebuyers boosts sales.
Federal Reserve Board chairman Ben Bernanke even told Congress that he is seeing "some signs of bottoming" in the housing market. And he expects overall economic activity to "bottom out, and then turn up later this year."
Despite the improvement in sales, the PMI chief economist says house prices will continue to fall this year. "It will go down 9% to 10% this year and it will be roughly flat next year," Mr. Berson said. "There are just too many homes for sale," he said, and too many vacant homes.
The PMI Group uses First American Loan Performance data in forecasting house prices, which shows prices have declined by 22% since the peak in the third quarter of 2006. From the first quarter of 2008 through the first quarter of 2009 prices have fallen 11.7%.
Meanwhile, the Census Bureau reported that only 345,000 full-time employees lost their jobs in May, compared 700,000 during the winter months. But the unemployment rate jumped to 9.4% from 8.9% in April.
"It is a good sign and it bolsters the argument that the housing market should bottom in terms of sales and perhaps in (housing) starts" possibly in June or July, according to Scott Anderson, senior economist at Wells Fargo & Co.However, the yield on the 10-year Treasury note has risen sharply in the past few weeks and the
Federal Reserve is struggling to keep mortgage rates low. The average rate on 30-year fixed-rate mortgages hit 5.59% during the week of June 12, according to Freddie Mac. This has already impacted refis. The Mortgage Bankers Association refinancing application index has plummeted to 2,600 from 6,800 on April 3.
"Just as we are hitting bottom in the housing market there is a lot of uncertainty about how strong the recovery will be," the Wells Fargo economist said. "The risk factor is mortgage rates," Mr. Anderson said, which could keep home sales stuck at "moribund levels."
His forecast calls for house prices to drop 5%-10% from April 1 through February 2010. He expects the unemployment rate will peak around 9.7% in the fourth quarter of 2009 or the first quarter of 2010 and remain at that level for most of the year. Defaults and foreclosures won't "top out until some time in 2010," Mr. Anderson said.
Meanwhile, declining house prices undermine homeowners' equity and make it difficult to modify mortgages, especially if the owner losses their job.
A Mortgage Bankers Association delinquency report shows there were 600,000 foreclosure starts in the first quarter. And foreclosure starts on prime loans jumped ahead of subprime loans for the first time this decade.
Defaults on prime loans are the "hardest to fix" because they mostly reflects the loss of a job or other life event, according to MBA chief economist Jay Brinkmann. "Since the mortgage performance lags improvement in the job market, that would put us to the end of 2010 or possibly the first quarter of 2011 before we see a nationwide improvement in the performance of mortgages," Mr. Brinkmann said.
He made his comments in releasing MBA's delinquency report, which shows the serious delinquency rate on all single-family loans (90 days or more past due or in foreclosure) hit an all-time high of 7.38% in the first quarter.

California shows recovery in Housing

2009-07-03T22:22:00.000-07:00

California housing market shows pockets of recoveryA surge in home sales that started in some of California 's more affordable inland areas has begun to spread to several more expensive coastal areas, another indicator that the state's real estate market may be in recovery mode. Many homes in the lower end of the market are receiving multiple offers, with some prospective buyers bidding well above asking prices. Inventory levels for homes priced under $500,000 stood at 3.2 months in May 2009, compared with 9.4 months in May 2008.Some buyers, especially those in historically higher-priced markets such as the San Francisco Bay Area, are newly optimistic about buying homes and are realizing that the combination of low interest rates, favorable home prices, and first-time home buyer tax credits may not realign for many years.Some housing economists caution against interpreting signs of increased sales activity as meaning the market has bottomed. Interest rates on 30-year, fixed-rate prime mortgages have risen above 5 percent in recent weeks and could continue to increase as fears of inflation impact interest rates. Additionally, the federal tax credit for first-time home buyers is scheduled to end Nov. 30, which may remove the incentive to purchase.Although the median price in the state has risen for four consecutivemonths, prices in some higher-income neighborhoods still are declining. Some agents say that declining prices in these neighborhoods are a reflection of borrowers' problems getting jumbo mortgages to make purchases. This month's Market Snapshot features: Buyers who are having difficulty arranging financing or coming up with a down payment may want to consider rent-to-own or lease-options. Generally, these deals require buyers to pay extra amounts of rent each month, in addition to the normal market-rate rent, plus up-front fees of approximately 5 percent of the purchase price. The owner keeps the regular rent, but the additional payments are used to buy down the price of the home. While rent-to-own options may be a viable choice for some buyers, most real estate experts recommend buyers and sellers work with attorneys experienced in drafting lease-option agreements. Although rent-to-own options enable buyers to walk away from the deal for a variety of reasons, including deciding the home or neighborhood isn't a good fit; one drawback is that by walking away, buyers agree to forfeit the up-front fees and the additional monthly rent they've been paying. Additionally, at the end of the term, if the buyer still is unable to secure financing they also may have to forfeit the money.

Fannie Mae and Freddie Mac make more changes to Mortgage

2009-07-03T22:20:00.000-07:00

This week's Mortgage Update contains information about lawmakers urging Fannie Mae and Freddie Mac to relax standards for mortgage on new condominiums, and how mortgage lending rules will impact real estate. Changes urged to rules on condo loansIn a letter to the chief executives of Fannie Mae and Freddie Mac, Reps. Barney Frank (D.-Mass.) and Anthony Weiner (D.-N.Y.) urged the GSEs to ease the recently tightened standards for mortgages on new condominiums, saying they could threaten the viability of some developments and slow the housing-market recovery. In March, Fannie Mae said it would no longer guarantee mortgages on condos in buildings where fewer than 70 percent of the units had been sold, up from 51 percent. Fannie Mae also won't purchase mortgages in buildings where 15 percent of owners are delinquent on condo association dues or where one owner has more than 10 percent of units. Freddie Mac plans to implement similar policies next month. Officials at Fannie Mae report that the 70-percent rule does not apply to loan applications submitted through an underwriting program used by major lenders. Developers also are able to apply for exemptions to the new policies for loans that are manually underwritten. Will tough mortgage rules hurt real estate recovery? Real estate may be showing signs of a turnaround in many local markets but the nation's largest mortgage players continue to ratchet up their underwriting rules, making home purchases more difficult for some buyers.Mortgage giant Fannie Mae, for example, issued a laundry list of tougher policies June 8 that could directly affect thousands of buyers in the coming months, especially those involved in job-related transfers. Reversing a long-standing policy, Fannie no longer will permit mortgage applicants to count the income of so-called "trailing spouses" toward the household income needed to qualify for a loan. A trailing spouse is one who joins his or her spouse or partner in a job-related move, but who has yet to obtain employment in the new location. If the main breadwinner's income isn't sufficient to handle the mortgage, the loan application will be rejected; only when the trailing spouse has documented income in the new location will it be counted. Brian Faith, a spokesman for Fannie Mae, said "given the current economic and job market instability, the company has opted to discontinue consideration of trailing secondary wage-earner income in the interest of safer underwriting, since this income would only be anticipated and undocumented." Jan Hatfield-Goldman, a vice president for Worldwide ERC, the international trade association representing the employee relocation industry, said Fannie's decision "makes the current challenging relocation environment even more so. Some transfers will either have to qualify on the basis of one income" - forcing couples to "buy less house than they wanted" - or "they may be required to rent for an extended period of time until the spouse or couple is re-employed. If a couple must wait to purchase a new home until the spouse can find a new job, it could well cause some to reconsider" whether they want to make the job shift at all. Worldwide ERC estimates that about 800,000 households in the United States move in a typical year because of job transfers. Freddie Mac, which with Fannie Mae accounts for 70 percent-plus of all new mortgage volume, still counts trailing spouse or co-borrower income for loan applications, but under strict guidelines:The amount of the trailing co-borrower income cannot exceed 33 percent of the total qualifying income for the mortgage application.That income cannot be from self-employment.The trailing spouse must have been continuously employed in the same occupation for at least two years preceding the relocation.And the co-borrower must provide a statement of intent to find employment in the new location. The loan officer or lender must also analyze that local employment market and verify that there are adequate opportunities and earnings potential for the co-borrower.As part of its June 8 tightening of underwriting rules, Fannie Mae also announced that it plans to discount the values of all borrowers' stock, bond, mutual fund and retirement fund holdings that are claimed toward the applicants' financial reserves needed to qualify for a mortgage. While Fannie previously counted 100 percent of the claimed or documented value of stocks, bonds and mutual funds toward reserves, under its revised policy it will discount them by 30 percent.

Chinese Drywall Litigation about to Snowball Industry

2009-07-03T22:18:00.000-07:00

Chinese Drywall Insurance Litigation
Wednesday, 24 June 2009
We have seen this to date from the perspective of increasing claims being made, both state and federal regulators seeking ways to regulate, protect consumers and also determine responsibility and liability for the damages caused by Chinese drywall. Concurrently, the first lawsuits regarding insurance coverage for these claims are starting to move through the courts. Following is a discussion of the issue from that perspective.
Homeowner's PoliciesIn March 2009, Baker v. American Home Assurance Company, No. 09-cv-188 was filed in the United States District Court for the Middle District of Florida. Baker is the first complaint regarding homeowner’s insurance for drywall claims. In the Baker case, two Florida policyholders sued their homeowners’ insurer, seeking coverage for property damage resulting from Chinese drywall in their home. The Complaint filed was rather plain. with the policyholders alleging that they notified their insurer of a loss in December 2008 caused from the gases emitted by drywall. The Complaint alleges further that the insurer verbally denied the claim based on “contamination,” but that no formal declination has been issued. In its answer, the insurer denied coverage based upon policy exclusions for pollution, wear and tear, and faulty materials. The insurer also answered that the claim fell outside the policy period. Apparently, the insurer is trying to base some of its reasoning for denial of coverage that the damage occurred at the time the drywall was installed, not the time it began to emit noxious odors. Commercial General Liability PoliciesInsurance disputes concerning contractors' Commercial General Liability ("CGL") policies are also pending. In April 2009, it was reported that Lennar Corporation, one of the principal defendants in Florida’s Chinese drywall litigation, stated that it believed that its insurance would cover the drywall claims. There has been no comment from the insurer. However, the insurer of another homebuilder commenced a declaratory judgment action in the Eastern District of Virginia, Builders Mutual Insurance Company v. Dragas Management Corporation, 2:09-cv-185. Builders Mutual is seeking a declaration that it did not owe defense or indemnity to its insured for Chinese drywall based on the pollution exclusion and the work-product exclusions.
The Component Not Product ArgumentInsurance industry experts are watching the Chinese drywall suits and comparing them to past litigation involving EIFS (Exterior Insulation and Finishing Systems), a building product that provides exterior walls with an insulated finished surface, and waterproofing in an integrated composite material system. The analogy between Chins Drywall and EIFS is that both products are components incorporated into a structure, and as such were intended to have the same useful life of the structure. In Keck v Dryvit Systems, Inc., 830 So.2d 1 (Ala. 2002), the Alabama Supreme Court held that such components are not “products” within the meaning of the Alabama Extended Manufacturers Liability Doctrine (AEMLD), stating:
The owner of a house or of any building should reasonably expect that many components will have the same useful life as the house or building itself and will not need to be replaced over the life of the building. Such components include, by way of example, an exterior brick wall, a staircase, or a fireplace. There are also certain components of a house or a building the purchaser reasonably expects to wear out and to require replacement in the course of normal and ordinary usage, such as roof shingles, a dishwasher, a furnace, or a hot-water heater. Whether an item that is incorporated into real property may be considered a “product” for purposes of the AEMLD is determined by whether the item is a part of the structural integrity of the house or building that is reasonably expected to last for the useful life of the house or building. If it is, then the item cannot be considered a “product” for purposes of the AEMLD. However, if the item is attached or incorporated into real property and, yet its very function and nature clearly makes it an item that one would reasonably expect to repair or to replace during the useful life of the realty, the item may be considered a “product” for purposes of the AEMLD. For instance, although paint, when applied to the structure of a wall, becomes incorporated into the surface of the wall, paint is a structural improvement that does not have the same useful life as the wall itself or the building to which the wall is attached; one would expect to have to repaint a wall to maintain the quality of the first application. Therefore, paint would be considered a product for purposes of the AEMLD.The Keck Court held that EIFS was intended to last for the useful life of the structure, and was not subject to the AEMLD. Further, the Court also held that it was not a “good” under the Uniform Commercial Code, and therefore was not subject to the rules concerning warranties of merchantability. An analogous argument could made that Chins drywall would satisfy the Court's test in Keck , and would therefore not be classified as either a “product” or a “good.”Of particular interest to the default servicing industry is whether a builder or installer would be potentially held liable on a negligence theory for the installation of Chinese drywall. This could be a key difference between Chinese drywall and EIFS litigation. The negligence theories against builders and installers in EIFS often revolved around arguments that the system was improperly installed, and that installation led to problems with moisture intrusion, termites, and other resulting problems. In contrast, the issues concerning Chins drywall are based upon the problems with the product itself, not the installation.. Note that generally, a builder is not liable for latent defects in building materials that are used and “he is not liable to the owner for the latent defect or liable for the amount of damage to the building caused by such defect.” 13 Am. Jur. 2d, Building and Construction Contracts § 27 (1997); Wood-Hopkins Contracting Co. v. Masonry Contractors, Inc., 235 So.2d 548 (Fla. Ct. App.1970). Unless a building owner is able to show that the builder or installer had knowledge of the problems associated with Chinese drywall, he or she may have problems with holding those entities accountable.
Civil LitigationGovernment and regulatory actions are occurring that may pave the way for a wave of civil lawsuits by or on behalf of homeowners affected by Chinese drywall. Florida Senators Mary Landrieu, D-La. and Bill Nelson, D-Fla, continue to voice concerns regarding Chinese drywall at the federal level. Both state and Federal agencies have been investigating the drywall itself. Procedures for developing interior air quality tests for the presence or impact of Chins drywall are reportedly being developed by a number of federal agenciesNew Orleans Times-Picayune reported on June 7, 2009 that Sen. Landrieu’s staff said that the federal tests could lay the groundwork for the Consumer Product Safety Commission to bring a civil action against the drywall manufacturers. Stephen Mysliwiec, a partner at the law firm DLA Piper, observed that it will not become clear who is liable for the defective product until consensus emerges on the precise cause of the problems. He noted that, one theory ventures that gypsum mined in China contains excessive sulfur, while another ventures that fly ash, a byproduct of the burning of coal, was used during the manufacturing process. "Until the science of what is causing the problem is settled, it is very difficult to know which party is going to be held liable for the cost of making repairs," Mysliwiec said. On June 15, 2009, a panel of federal judges ruled that lawsuits filed around the country against home builders, suppliers and manufacturers of Chinese drywall will be moved to New Orleans, where U.S. District Judge Eldon Fallon will preside over discovery and pre-trial hearings. By transferring all of the cases to federal court in New Orleans, the judicial panel is trying to ensure that lawyers for both the plaintiffs and the defense would not have to duplicate their efforts in multiple courts during discovery. Of equal importance, the panel seeks to prevent judges in different districts from handing down inconsistent rulings.
http://www.nola.com/news/index.ssf/2009/06/chinese_drywall_lawsuits_to_be.html.
A legal conference on Chinese drywall, closed to the public, took place in New Orleans on June 18, 2009. The conference presented by HB Litigation Conferences is designed for representatives of homeowners, builders, insurance companies and government agencies.
http://blog.nola.com/tpmoney/2009/06/new_orleans_hosts_legal_confer.html

U.S. Conference of Mayors 77th Annual Meeting Council for the New American City Session Summary

2009-07-03T22:12:00.000-07:00

Council for the New American City "Responding to The Mortgage Foreclosure Crisis: Implementing Neighborhood Stabilization Programs" Session Summary
ModeratorMayor Brenda Lawrence, City of Southfield, MIPresenters
James Diffley, HIS Global Insight
Norman Jacknis, CISCO
Robert Grossinger, Bank of America
Ron Phipps, National Association of Realtors
John Courson, Mortgage Bankers Association
Robert Klein, Safeguard Properties
Mayors in attendance representing municipalities across the country included, but were not limited to:
Burnsville, MN
Bowling Green, KY
West Palm Beach, FL
Carmel, IN
Dallas, TX
Lauderhill, FL
Davenport, IA
North Miami, FL
Dublin, OH
Opening Remarks and Roundtable Introductions
Mayor Brenda Lawrence opened the session by strongly confirming that vacant properties have taken precedence among the Conference of Mayors and municipalities across the country. As foreclosures have expanded to include skilled workers, a division once thought more immune and untouchable to this crisis, municipalities must respond proactively. This session included a panel of leading business representatives contributing to and addressing various aspects of municipal based initiatives.
Mayor Antonio Villaraigosa of Los Angeles concurred with the increasing volume and shifting demographic trend of foreclosures. His City is “loosing ground” on the battle against vacant properties and affirms that the only viable option is to partner and collaborate with the proven efforts of other Mayors across the country.
Overall, Mayors are looking for the input from the business community regarding resources that are needed to meet demands and accomplish initiatives designed for economic improvement and advancement.
Feedback from multiple Mayors in attendance affirmed that when dealing with vacant properties and the foreclosures crisis, earlier intervention and an increased willingness to accommodate the needs of mortgagors, is critical. Mayor Kaplan shared Lauderhill’s (FL) creative application of National Stabilization Program (NSP) dollars to offer homebuyer assistance for the private acquisition of vacant REO properties.
HIS Global Insight
James Diffley offered a summary of the American Recovery Funds Report, including the Metro Summit Report. These reports include, but are not limited to, the following significant observations. The rate of decline is slowing, but not sufficiently enough to allow for growth. Job loss is expected to continue to decline with a national crest of 10.3% in 2010. Although consumer attitudes are improving, they remain stressed and these attitudes to not indicate consumer recovery. Banking will continue to deteriorate as housing values continue to spiral.
The distribution of NSP funding has short changed larger, metropolitan areas with an obvious disparity for transportation projects.
IBSG Public Sector, CISCO
Norman Jacknis shared an update of the assistance CISCO is providing to government leaders with broadband technological applications and empowerment to residents to build and improve the quality of life within cities across the country.
National and foreign examples were provided for cities including urban development, sustainability and mobility initiatives, work centers with support venues in central locations, smart energy models, and eco mapping.
Bank of America
Recognized by Mayor Lawrence for their support of the Dollar Wise program, Rob Grossinger offered an overview of how Bank of America is addressing and refining the process of REO disposition. These procedural improvements integrate more effective communication and streamlined measures.
The disposition process related to broker assignment, appraisals, and marketing strategies at the 30, 60, 90, 120 day milestones were reviewed. Although private homeowners are acquiring a majority of the properties at auction, investors still represent a significant buyer stream.
It is crucial to build partnerships with communities to assist with low valued acquisitions, donations, and demolitions; however there are potential arbitration measures to consider.
Little can be documented on the success of the NSP within the first 10 months of its implementation; this can be attributed, in part, to the fact that banks were omitted from participation at the table to offer technical assistance and expertise with program design.
National Association of Realtors
Ron Phipps, affirming that the Association is a committed participatory member of the housing industry, indicated that recent home closings have included an increased and unprecedented number of short sales and distressed property acquisitions.
Price stabilization is the key to housing recovery.
The lack of capacity for brokers to process the potentially large inventory of REO properties is a grave issue. As significant delays with closings are identified as liability, a source has been noted as the multiple implications associated with the transfer of distressed properties.
Mortgage Bankers Association
John Courson confirmed that MBA members have been directly affected and impacted by the economic crisis, yet are actively involved, responding, and participating in current and future programming.
A brief overview of the general updates regarding the focus of the MBA, specifically related to homebuyer programs, tax incentives, and an ongoing evaluation and review of recommendations and requests of qualifications for programs that are either proposed or already in place by various sectors of the housing industry was offered.
Safeguard Properties
Robert Klein offered an overview of the role and responsibilities of field service companies within communities on a national level.
As Chair of the Mortgage Bankers Association (MBA), Robert Klein confirmed that addressing the negative impacts of vacant properties is a priority among the housing industry. The MBA has initiated and maintained direct contact and collaboration with cities across the country. The MBA, has led the charge by partnering with Mortgage Electronic Registration System (MERS) to create a viable solution for municipalities to reach compliance with exterior property maintenance standards.
Code Enforcement officials documented that the much needed contact information for the responsible parties for a vacant property was not obtainable. In direct response, the Industry upgraded the existing MERS database to include the direct point of contact for both the servicer and field service company.
Over 65 Million loans are currently on MERS, and that number continues to rise through the Initiative. Loans are uploaded through the newly created iReg option upon determination that the property is vacant.
Due to the immense volume of enacted municipal Vacant Property Registration Ordinances, many of which include inconsistent and ineffective language and requirements, MERS has been identified as a viable alternative to hard copy registrations. Based on the overwhelming and documented success of the MERS Initiative within six Pilot Cities since January 2009, the program is now being expanded to over 200 additional cities to a broader, more national level. An invitation was offered to all municipalities to participate in MERS.
As it was announced that the MBA is in the process of drafting and endorsing a Model VPR Ordinance that can serve as a template for municipalities. Citing the shortfall of MERS as only including half of the mortgaged loans, Mayor Kaplan, Lauderhill, FL, indicated that he is also drafting a Model Ordinance with separate consideration to electronic registration.

Read original : http://www.safeguardproperties.com/content/view/2423/106/

Yuba City named in US Conference of Mayors Vacant and Abadoned Properties Survey

2009-07-03T22:07:00.000-07:00

Following the Sunday June 14th session the US Conference of Mayors (USCM) released their 2009 Vacant and Abandoned Properties Survey and Best Practices.This Survey is the third in a series of reports prepared by The U.S. Conference of Mayors on cities’ efforts to combat problems of vacant and abandoned property. It updates and expands upon reports published in 2006 and 2008 and focuses on the impact of the mortgage foreclosure crisis on the problems created by vacant and abandoned properties and on cities’ efforts to manage them. Sixty cities responded to a set of survey questions sent to mayors at the end of April; 24 cities submitted descriptions of one or more “best practices” that have been or are being implemented to address their problem properties, touching on the following subjects:
Increase in Vacant and Abandoned Properties
Impact of the Foreclosure Crisis on Vacant and Abandoned Property Efforts
Neighborhood Stabilization Program
Changes in Local Ordinances and Policies
Seriousness of the Mortgage Foreclosure Problem
Impact of the Current Economic Recession
Mortgage Foreclosure Problems in the Next Year

Read report in full:
http://usmayors.org/pressreleases/uploads/VACANTANDABANDPROP09.pdf

Steel instead of Plywood for Vacant Property

2009-07-03T22:02:00.000-07:00

Washington DC Vacant Property Initiative
Monday, 18 May 2009
In a Press Release, Mayor Adrian M. Fenty announced a 60-day pilot program to test a new steel reinforcement system to secure nuisance vacant properties.
Mayor Fenty Highlights Vacant Property Initiative, Announces New Security Measures to Protect Residents, Minimize Blight Washington, DC – Mayor Adrian M. Fenty announced a new program on the final day of Building Safety week to better secure the District’s vacant properties to prevent vandalism, illegal activity and dangerous conditions in neighborhoods.Mayor Fenty and Department of Consumer and Regulatory Affairs (DCRA) Director Linda K. Argo announced a 60-day pilot program to test a new steel reinforcement system to secure nuisance vacant properties that will make them nearly impenetrable.“My goal is to eliminate all vacant property in the District and put these homes and buildings back into productive use,” Mayor Fenty said. “As we work to reach that goal, we need to ensure these buildings are as safe and secure as possible.”The one-of-a-kind system is currently being used in Chicago, Philadelphia, Newark, Baltimore and other major US cities battling the proliferation of vacant properties.Mayor Fenty made the announcement outside of 1515 Rhode Island Ave., NE, the site of the pilot program, which despite being continually secured by DCRA, became a haven for illegal activity in the neighborhood. While many of the 2,173 properties currently identified as vacant in the District are well maintained, some neglectful property owners fail to properly secure their buildings making them susceptible to squatters and other illegal activity. An estimated 10 to 25 percent of the vacant properties may fall into this “nuisance” category at any given time.Director Argo said DCRA purchases nearly 1,500 sheets of plywood annually to secure vacant properties. Yet, plywood sheets are prone to rot and deteriorate and quickly become targets for vandals. Last week, several teens became trapped in a vacant property after entering through a damaged plywood barrier.“Almost everyday we are being called to replace the plywood barriers we use to secure buildings that have been removed or literally broken through,” Argo said. “These vacant properties become harbors for criminal activity and are simply dangerous.” “Putting plywood over doors and windows only exacerbates the blight in our neighborhoods,” Argo said. “We feel this not only provides the highest level of security available but also looks so much better.”Following the 60-day pilot project, Argo said DCRA is considering legislation that would require owners of these nuisance vacant properties to install this system. If they refuse, DCRA will install the panels and place on a lien on the properties for all installation and removal costs.The new system, manufactured and installed by the Chicago-based Vacant Property Security Inc., uses reusable steel screens that are installed without damaging the building in any way. The new system allows light filtration and air circulation that helps prevent mold growth, making properties more viable candidates for immediate renovations.DCRA is asking residents and property owners to email the agency vacantproperty@dc.gov comments about the system. Photos of the property and other buildings that currently have the steel system in place are available at www.dcra.dc.gov under “Vacant Property.”The District requires all property owners to register their properties with DCRA within 30 days after they become vacant. Informational materials on exemptions, vacant property registration forms and appeal information are available at www.dcra.dc.gov.All properties classified as vacant by DCRA and do not meet any exemptions are subject to the new vacant property tax assessment of $10 per $100 assessed value. The Department of Consumer and Regulatory Affairs protects the health, safety, economic interests, and quality of life of residents, businesses, and visitors in the District of Columbia by issuing licenses and permits, conducting inspections, enforcing building, housing, and safety codes, regulating land use and development, and providing consumer education and advocacy services.

http://www.dc.gov/mayor/news/release.asp?id=1568&mon=200905

Alcohol Ban July 3, July 4th, July 5 2009 on Sacramento Rivers and Waterways

2009-07-03T18:43:00.000-07:00

County Regional Parks Reminds Visitors To Wear a Life Jacket on the American River this Weekend

Alcohol Ban and Life Jacket Requirements in Effect July 3 – July 5 – Keep in mind that the alcohol ban within the waterway and shore from Hazel to Watt Avenues on the American River will be in effect over the long weekend. Sacramento County’s life jacket requirement for kids under the age of 13 will also be enforced. Park Rangers will be on duty to make sure visitors stay safe while having fun. For more information, view the press release.

http://www.pio.saccounty.net/coswcms/groups/public/@wcm/@pub/@pio/@inter/documents/pressrelease/sac_019520.pdf

2009 July 4th Firework Shows

2009-07-03T18:16:00.000-07:00

Cal Expo and the City and County of Sacramento July 4, 2009 Cal Expo will again put on the largest display of fireworks beginning at 9:30 p.m…gates open at 6:00 p.m. Free admission, $8 parking fee. You are encouraged to bring lawn chairs and blankets.
Carmichael, CA Fireworks
July 4th Breakfast at Carmichael Park (5750 Grant Ave.) from 7 am-11 am. Parade starts are 10:30 am starting at Marconi/Fair Oaks down Fair Oaks Blvd to Cypress and Manzanita, come for the fun and food. Fireworks show at La Sierra Community Center (5325 Engle Rd.) begins at 6 p.m. and the fireworks at around 9:15 pm
Citrus Heights, CA Fireworks
Fireworks is held at Sunrise Mall begin at 7:30 pm with live music and 3-D glasses to view the fireworks starting at 9:40 pm . or go for the day for fun starting at noon. The firework event is FREE
Elk Grove, CA Fireworks
Salute to Red, White & Blue at Elk Grove Regional Park at 9:45 pm for fireworks is a favorite all day event with food, games, vendors and just plain fun. Gates open at 6 am with entertainment starting at 3 pm. Admission is FREE, parking is $10 per vehicle
Folsom, CA Fireworks
Gates at Folsom Lions City Park open at 6 pm. Fireworks at Folsom Pro Rodeo in the Dan Russel Arena nightly from July 2-4, 2009. The Pro Rodeo begins at 7 pm Price: $15 to $22.50 Free shuttle courtesy of Jackson Rancheria at the WalMart parking lot.
Rancho Cordova, CA Fireworks
will celebrate at Rancho Cordova Hagan Park with 2 days of fun, parades, food, concerts ending with fireworks displays both Friday, July 3rd and Saturday, July 4th. Hagan Park is located at 2197 Chase Drive. Click to see a map of the area and where the festivities will be at Hagan Park It’s best this year with all the many fires throughout California to leave the fireworks to the professionals and just sit back and enjoy.
El Dorado County Fireworks
Tahoe’s Fireworks
South Lake Tahoe will be having Lights on the Lake . North Shore at Lake Tahoe North Shore Fire Works Schedule July 4th, 2009 at 9:00 pm bring a picnic, meet your neighbors and claim your spot on the beach.
Kings Beach
Squaw Valley
Tahoe City
Truckee (Donner Lake)
Incline Village
Westshore Lake Tahoe
Tahoe City’s July 4th Celebration begins at 9:30 pm at Commons Beach Incline Village celebrates Red, White and Tahoe Blue starting July 4 at the Village Green Truckee, July 4th hometown parade starts at 10 am and fireworks at 9:00 pm at Donner Lakes West End Beach (beach access is limited to homeowners & local residents)
PLACER COUNTY Fireworks
Placer County Fireworks
Auburn, CA Fireworks
Auburn Gold Country Fairgrounds appears to have fireworks this year. Bring your own chairs and a picnic and join Little Miss and Little Mr Firecracker. Parade starts at 7:00 pm with fireworks at 9:40 pm Click Google map to Auburn Gold Country Fairgrounds at 1273 High Street. Click for July 4th Parade route.
Lincoln, CA Fireworks
Lincoln celebrates July 4th
Roseville, CA Fireworks
Start off your July 4th celebration in Downtown Historic Roseville with an early morning 10:00 a.m. parade that ends at Royer Park for loads of fun, food and games from 11:00-2:00 p.m. Then high tail on over to Placer County Fairgrounds for the 9:30 pm July 4th Fireworks show.
Yolo County Fireworks
Davis, CA Fireworks
will celebrate with a party at the Community Park with free swimming, vendor and entertainment will be present with fireworks kick off at 9:30 p.m.
If you have a favorite 4th of July activity or know of a community with fireworks, please comment below and I will be sure to include. Check back for updates.

News Updates:

Kcra - http://www.kcra.com/travelgetaways/19890719/detail.html
Channel 10 News-http://www.news10.net/news/local/story.aspx?storyid=62308&provider=top

Managing an REO

2009-06-23T15:10:00.000-07:00

From walls to floors and cabinets to countertops, asset managers have to cover a lot of ground in order to make sure an REO property is clean and ready to sell.
It is a wise move for asset managers to give their real estate agents, brokers and service providers a guide to use when getting real estate-owned assets spic-and-span, according to CJ Gehlke, president and founder of REO Nationwide in Newport Beach, Calif.
Let's get down to specifics. Inside the home, Ms. Gehlke recommends to take a close look at the kitchen. Remove the refrigerator if it is inoperable and not repairable. If it is in working condition, remove the kick plate at the bottom front of the refrigerator and remove and clean the defrost pan. Defrost the fridge, remove and clean all shelves, racks and drawers. After cleaning, reassemble the refrigerator, and turn it on, setting the control at the warmest setting.
For drawers in the kitchen, empty and clean all stains and food particles by washing them with mild soap and warm water. Remove any worn paper lining. Wipe out drawers. It is important to clean the interior of the dishwasher and remove any food particles. Clean the soap holder, racks and trays. Clean the exterior by wiping with mild soap and warm water.
Next, move down the hallway of home to the washer and dryer. REO Nationwide says it's important to clean the interior thoroughly and include any filters. Remove all mineral and dried soap deposits from the top of the washer.
"For the furnace, remove and thoroughly clean or replace filter in the bottom of furnace. Clean all windows inside and out. Don't forget the screens. Vacuum Venetian blinds to remove dust and spots," says Ms. Gehlke. "Wipe the window sills to remove dust, spots or stains. The walls and ceilings take up a great deal of time. Brush out all corners to remove any dust. Clean the ceiling surrounding all vents."
There's more work to be done. Inside the bathroom, make sure to sanitize all tile and shower doors to remove lime deposits and mildew. Scrub the tub as well as the shower and sinks. "It is important to clean thoroughly any woodwork, including doors, door frames and baseboards."
Also, sweep and mop hardwood floors, title and linoleum. Don't forget to take care of the carpet. Remove stains and shampoo when this is requested. Empty and tidy up shelves, drawers and closets thoroughly. Remove, dust and replace the light fixtures. All fixtures should have an operable 60-watt bulb in each socket, says Ms. Gehlke. "If the house has a fireplace, go over it thoroughly to include the ash compartment. Sweep, clean and remove all trash and debris from the back porch."
Don't forget the garages and carports. Get rid of all trash and debris, and sweep clean these areas of the property. Remove the oil and grease from floor of carport/garage and driveways. Vacuum any vents in the property and haul off items from the storage sheds and make sure to sweep this area clean. And of course, remove all items of personal property.
If the amount of personal property exceeds a certain threshold (industry standards are $500), the personal property goes through an eviction process in accordance to state and local requirements. When it comes with dealing with the outside of the home, Cheryl Lang, president of the Houston-based Integrated Mortgage Solutions, says in the summer, contractors mow the lawn every two weeks and trim the bushes during April to October.
She says part of property preservation means ensuring that all hazardous materials have been removed from the property. This may include removing swing sets, tires, paint, boarding up in-ground pools or removing aboveground pools and draining ponds.
"The process of preserving property has been greatly improved by the use of digital imaging," describes Ms. Lang. "Because contractors may miss something or deem a property vacant when it is occupied, most vendors today require pictures to verify contractor's work. It is estimated that roughly 20% of contractor mistakes are caught using digital photos."
Some vendors today even provide phones with camera capabilities to contractors, so they may collect and share real-time photos in order to expedite the property preservation process. As more and more REO homes need to be monitored and preserved, technology ultimately allows more details to be presented on every property.
Photoinspection.com, a Buffalo, New York based company, provides property inspection services for the insurance and mortgage industries. The company, which was established in 1999, has focused on developing a robust and functional technology platform from the very beginning. The company has built a national network of inspectors, which was not an easy thing to do for a small company that was surviving on a bootstrap financing, says Ted Onyeji, president.
A network that includes several thousand appraisers located across the country has become the backbone of the company, he describes. Inspectors are monitored on their first 10 jobs to make sure they comply with industry standards. "We've noticed a lot of inspection companies are beginning to add inspectors across the country, especially in the areas of Florida and Michigan because of the glut of houses out there."
The biggest goal is to make sure the vacant property is not an eyesore.
Safeguard Properties, a privately held field services company located in Valley View, Ohio, makes sure the grass is cut, that there are no broken windows and if there is a gas or water leak inside the home, the company addresses those types of problems immediately.
Safeguard also offers maid services. Contractors are to follow the maid services checklist included in the work order and leave it at the property signed by the person who completed the services. This is a requirement when completing the initial services order. "You have no idea what we find in some of these properties. We will wash the counters down, clean the fridge, put in air fresheners so it doesn't smell like an REO," says Mr. Klein.
Bleach and household cleaners are used to rid a property of a smell, along with a powder scent put down on the carpet before vacuuming. Contractors bring a hot water supply with them to perform the cleaning. If carpet is in deplorable condition, the contractor will notify Safeguard to have it removed. "The lender wants to sell the REO as soon as possible to a homeowner who will live in the property. You want to make it as attractive as possible. You have to make it look and smell good. We try to do the best we can. We do as much as we can so the neighbors don't have a rundown home with 50 tires in the front yard," he adds.
Properties are becoming more seriously damaged as well. Some homeowners in foreclosure are so frustrated they will do serious damage to the property. They take out appliances, put holes in the walls and holes in the floor, he says. "There is no rhyme or reason. They are taking their frustration out on the system or the process. We are seeing that more and more."
By the time the mortgage company gets a hold of one of these properties, it is sometimes problematic. Safeguard hire various contractors they have built relationships with to do repairs such as re-roof a home. In today's market the industry is seeing an increase in the amount of repairs being done to vacant REOs.
"The goal of the mortgage company is to sell this property as quickly as possible. Every day they hold on to it is costing them money, in addition to the foreclosure process. It's a bigger financial loss. We want to make the house inviting and attractive to the possible homeowner."

Full Article: http://www.managingreo.com/feature/?story_id=89

PTC neighbors mow foreclosed lawns

2009-06-23T15:04:00.000-07:00

Peachtree City has not escaped the nationwide trend of home foreclosures.
While some of those homes are in the lower price range, some are in the very high price range too, as they are not confined to any area or neighborhood, said Senior Code Enforcement Officer Tami Babb.
Foreclosed homes have ranged from the $60,000 range to upwards of $600,000 or more, she said. One home in foreclosure was listed at $1.5 million in public newspaper notices, the main resource code enforcement uses to track foreclosures, Babb said.
“We’ve dealt with foreclosures before,” Babb said. “What’s different now is that it’s in every area.”
The foreclosed homes have not led to major issues so far, Babb said. But homes in foreclosure limbo, after they have been abandoned but before the banks resume ownership, have caused some trouble, she added.
To secure pool fences on abandoned properties, the city uses nylon straps to prevent trespassers from entering, Babb said. In some cases, neighbors are mowing the lawns of abandoned homes, Babb said.
One homeowner in particular who skipped town was particularly onerous and would have merited a citation with an appearance in city court had he remained here with the property unkempt, Babb said. But the owner moved out of state, so it may be impossible to hold him accountable, she added.
“Lots of people have left town and we can’t find them,” Babb said. “But they are still legally responsible.”
Once banks take possession of foreclosed homes, they generally do a good job of making sure the lawn is kept up and that the house doesn’t fall into disrepair, Babb said.
The city has not had to condemn any foreclosed homes due to structural defects or code violations, she added.
One private company, Safeguard, does a particularly good job of handling such issues including the regular lawn work and also fixing broken windows, Babb said.
Dealing with foreclosures is time-consuming, Babb said, adding that it has been made a bit easier since Fayette County deed records can be searched by computer to find the true owner of a given parcel.
Babb noted that the recently expired three-month moratorium on foreclosures was difficult because most of the city’s homes in the foreclosure process had already been abandoned ... but the banks had been unable to take possession of them during that time.
The code enforcement department also has seen a drop in the number of calls from potential investors looking for a good deal on real estate, Babb added. Yet she remains optimistic that the future will improve.
“I really believe this is going to turn around,” Babb said.
Babb asks anyone with questions about particular homes to call code enforcement. Some neighbors are aware homes are in trouble before the notice is published in the newspaper, she added.

Original Article: http://www.thecitizen.com/~citizen0/node/37030

AN ACT CONCERNING NEIGHBORHOOD PROTECTION Connecticut SB 951

2009-06-23T14:58:00.000-07:00

http://www.cga.ct.gov/2009/BA/2009SB-00951-R01-BA.htm
SUMMARY:
This bill creates a registration system for tracking the owners of uninhabited one- to four-family dwellings obtained by strict foreclosure or foreclosure by sale (“registrants”). It specifically allows municipalities to enforce against a registrant any provision of the statutes or municipal ordinance on the repair or maintenance of real estate after the municipality has provided notice and an opportunity to remedy the situation.
The bill prohibits municipalities from imposing registration requirements outside of the bill unless they were in effect before the bill's effective date. It also prohibits municipalities from adopting an ordinance or regulation on the property maintenance activities of a person who obtained title by foreclosure. However, any such ordinances or regulations adopted before the bill's effective date remain in effect and municipalities can enact or enforce ordinances or regulations that apply generally to all property owners. The bill also provides that these provisions do not prohibit or limit a municipality from adopting or enforcing an ordinance or regulation adopted under statutes relating to (1) the prevention of housing blight, (2) the maintenance of safe and sanitary housing, or (3) the abatement of nuisances.
*Senate Amendment “A” makes a number of changes, including:
1. eliminating new property maintenance standard, penalties, and enforcement procedures, and instead referring to existing laws on property repair and maintenance;
2. allowing notices under these existing laws to be delivered to registrants in accordance with the bill;
3. closes a gap with regard to the registration requirement by including properties that become vacant after an eviction (rather than just though an ejectment action) and limits it to those that become vacant within 120 days of title vesting;
4. specifying the information that must be included with MERS registrations; and
5. specifies that registrations must include information about property maintenance companies only if the registrant hired one.
EFFECTIVE DATE: October 1, 2009
REGISTRATION
The properties must be registered with the town clerk of the municipality in which they are located or with the Mortgage Electronic Registration Systems (MERS) (see BACKGROUND). The deadline for doing this depends on when the property becomes vacant. If the property is vacant on the day title vests, then it must be registered within 10 days of that date. If the property becomes vacant due to an execution of ejectment or eviction within 120 days after title vests, then it must be registered within 10 days after the property becomes vacant.
If the registration is with the municipality, the registrant must pay a $ 100 fee and provide (1) the registrant's name, address, telephone number, and electronic mail address (“contact information”) and, if the registrant is a corporation or an individual who resides out-of-state, the contact information for a direct contact; and (2) if there is one, the contact information for the local property maintenance company responsible for the security and maintenance of the vacant residential property. The registrant must indicate whether it prefers to be contacted by first class or electronic mail and the preferred addresses for such communications and must report any changes in the registration information within 10 days following the date of the change. Those registering with MERS must provide contact information for either the registrant or the property maintenance company, if there is one.
VIOLATIONS AND DUE PROCESS
If the registrant violates any provision of the general statutes or municipal ordinance on the repair or maintenance of real estate, the municipality can issue a notice to the person citing the violating conditions. The notice must be sent by first class or electronic mail, or both, and must be sent to the address or addresses identified on the registration. A copy of the notice must be sent by first class or electronic mail to the identified local property maintenance company, if there is one. The notice must also meet the same standards as notices to remedy a health, housing, or safety code violation (i. e. , notice must be sent to the lienholder).
The notice must provide a date by which the registrant can remedy the conditions in question. The date must be reasonable under the circumstances. If the registrant or property maintenance company fails to do so, the municipality can enforce its rights under the relevant statute or ordinance.
The bill allows municipalities to use the bill's notice procedure when enforcing property maintenance and repair ordinances and statutes against registrants.
BACKGROUND
Mortgage Electronic Registration Systems
According to its website, MERS is an online system, created by the real estate finance industry, that “simplifies the way mortgage ownership and servicing rights are originated, sold and tracked. ”

California running out of $10,000 tax credits

2009-06-23T13:33:00.000-07:00

First-time home buyers wanting to take advantage of the state's $10,000 tax credit may have less time than originally expected. California set aside $100 million to help home buyers purchase newly built homes, hoping to jump start the residential-construction market. According to state officials, the tactic has worked well and is helping to entice home buyers into the market. However, there only is approximately 20 percent of the program's funding remaining.The program launched in March, and as of June 3 nearly $24 million in tax credit certificates already had been issued, according to the state's Franchise Tax Board, leaving nearly $76 million in credit available. Many applications still are in the pipeline awaiting approval. If all of the submitted applications are approved, only $17.5 million would remain in the fund. The California state legislature is considering adding another $200 million to the program. However, securing approval may be difficult due to the state's estimated $24 billion budget deficit. A bill to extend the program already has won Assembly approval and now is awaiting activity in the state Senate.

90-day foreclosure moratorium law Starts June 15, 2009

2009-06-14T17:45:00.000-07:00

By Jim Wasserman jwasserman@sacbee.com q{
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Published: Saturday, Jun. 13, 2009 - 12:00 am Page 6B
After a severe economic storm of more than 365,000 California foreclosures since early 2007, the state's long-awaited 90-day foreclosure moratorium law goes into effect Monday.
But it doesn't mean foreclosures will stop.
Supporters acknowledge the state is likely to see thousands more foreclosures before the crisis subsides. The law, indeed, goes into effect as lenders are ramping up repossessions following expiration of earlier moratoriums, according to housing trackers.
But the California Foreclosure Prevention Act, passed as Assembly Bill X2 7 by lawmakers in February and signed by Gov. Arnold Schwarzenegger, raises a new hurdle in the foreclosure process.
Backers say it will make lenders try harder to keep borrowers in homes. Starting Monday, loan servicers must prove to the state they have comprehensive loan modification programs in place – or be denied rights to foreclose on their own schedules.
"You have voluntary programs that they don't have to do," said Assemblyman Ted Lieu, a Torrance Democrat who was the author of the bill. "This creates an enforcement mechanism to force them to do it. The hammer is the 90-day foreclosure moratorium, which they all hate."
The law will largely press lenders to follow the Obama administration's Making Home Affordable Program that began in March. That encourages lenders to cut interest rates or rewrite loans to 40-year terms to get payments below 38 percent of a borrower's monthly income. Other options include reducing principal and tacking missed payments to the back of the loan. Under the law, California officials also can encourage short sales or deeds in lieu – options in which banks accept less than owed – for borrowers who want to leave or don't qualify for modifications.
"The vast majority of large servicers should have no trouble complying. They have already complied with similar requirements at the federal level," said Dustin Hobbs, spokesman for the California Mortgage Bankers Association.
As the nation's first statewide moratorium law of its kind, according to Lieu, hopes are it will "slow down the rate of foreclosures."
"For some people there's not much that can be done," said the lawmaker. "But there are a fair number of people on the bubble … if they can get some assistance, they can stay in their home."
California Department of Corporations spokesman Mark Leyes said the state can't force or guarantee loan modifications. But the law is rooted in another state power that gives it leverage with lenders.
"What we do have control over is the legal process by which foreclosure is executed in this state," he said. Hence, adding 90 days to the process for those that don't comply.
Lieu said, "Not all banks are doing it at the same level. Some have good (modification efforts), some have bad ones and some have none."
Lenders have received widespread criticism for being overwhelmed by the foreclosure crisis and slow to rewrite loans despite receiving billions of dollars in federal assistance. Borrowers and nonprofit loan counseling agencies alike have complained of frustrating delays and snafus in the process.
On the front lines of the crisis it's easy to be wary about yet another new law or program.
"We're hopeful it will help, but in reality, time after time these things come out and the results are the same," said Pam Canada, executive director of the nonprofit counseling firm NeighborWorks Homeownership Center of Sacramento.
The new law represents a third evolution of California's response to a housing crisis that has severely damaged the economy and devastated local and state government budgets. In late 2007, Schwarzenegger entered into a voluntary agreement with subprime lenders to modify more loans.
Last summer, he signed Senate Bill 1137, which temporarily slowed banks' foreclosure machinery, making them work harder to contact borrowers and offer alternatives.
But foreclosures, while down in recent months, have continued in hard-hit California, especially in the capital region.
The region suffered almost 4,000 new foreclosures in January, February and March, and another 12,000 households are well behind on payments, according to Bay Area tracker ForeclosureRadar.
In summary, here's what will happen starting Monday:
• Lenders will submit applications to the state outlining their loan modification programs. That gives them a 30-day exemption from a moratorium.
• If the state OKs a lender's program, the firm is permanently exempt from the 90-day delay on foreclosures.
• If the state rejects the program as inadequate, a lender has 30 days to upgrade it and be reconsidered.
Leyes said consumers will be able to see a list of lenders that comply with the state's requirements by mid-July.

Refer to this link verify post: http://www.sacbee.com/business/story/1943201.html

Market Update and How a 15 Year Mortage saves you $$P

2009-06-03T21:19:00.000-07:00

Signs of more trouble ahead for housing marketSeveral recent market barometers, including declining housing inventory, increasing buyer competition, slowing price depreciation, and rising builder confidence all point to a real estate market rebound. However, other signs such as rising unemployment, lack of “move-up” buyers, stricter loan underwriting standards, and foreclosures also may impact the market’s recovery.Rising unemployment means that those who own a home, but are not currently employed, could lose their homes to foreclosure. While the first round of foreclosures mainly encompassed people who had difficulty affording their homes even when employed, a second wave may be brought on by those who lose their jobs and are not able to continue paying their mortgages. Numerous programs are in the works to help remedy this situation, including C.A.R.’s Mortgage Protection Program. Eligible first-time buyers who lose their job may be able to receive $1,500 for six months to help pay their mortgages. For more information on this program, please visit:

http://www.car.org/aboutus/hafmainpage/carhafmortgageprotection/While some housing analysts believe overall the state’s housing prices remain unaffordable; 69 percent of the state’s households could afford to purchase an entry-level home in California in the first quarter of this year, compared with 46 percent during the first quarter last year, according to C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI).A study conducted by the Comptroller of the Currency found that more than half of modified mortgages again were delinquent within months of the modification, often because the homeowners still were unable to make regular mortgage payments despite the modified terms. However, the study was conducted prior to the Obama administration’s mortgage modification plan. For more information about the Obama administration’s foreclosure-prevention efforts, please visit:

http://www.car.org/newsstand/newsreleases/fapsummary
Mortgage News: This week’s Mortgage Update contains information about refinancing and 15-year mortgages.A battle plan for refinancing your mortgageHomeowners seeking to refinance their mortgages may be surprised by the amount of paperwork required. During the “easy credit” years, some lenders did not require proof of income or documentation. Nowadays, most lenders require borrowers to provide pay stubs, banks statements, brokerage statements, and possibly tax returns. Self-employed individuals may be asked for a profit-and-loss statement. Those relying on bonus income should expect that most lenders will assume this year’s bonus will be a lot less than last year’s, which could make securing approval more difficult. Determining the amount of equity in the home is key to being approved for a new loan. Homeowners whose mortgage obligations are less than 80 percent of the home’s value are more likely to have refinancing options available to them. Other homeowners who are current on their mortgages, owe 80 percent to 105 percent of the home’s value, and have a loan owned by Fannie Mae or Freddie Mac may be able to refinance under the government’s “Making Home Affordable” program. Other factors to take into consideration when refinancing are the property’s appraised value, the homeowners’ credit score(s), whether or not the property has a second mortgage, and the length of the original loan.
MortgagesMore Takers for 15-Year Loans
THE 30-year fixed-rate mortgage has traditionally been the go-to loan for borrowers who want stability and lower payments. Adjustable-rate mortgages, by contrast, are often seen as more suitable for risk takers and those who expect to sell their homes in a short time.More recently, there has been increased activity in another loan alternative: a fixed-rate mortgage with a 15-year term. Debt shedding comes at a price. Those borrowing $400,000 on a 15-year loan, with a 4.375 percent interest rate, the average rate earlier this month, can expect to pay about $3,034 a month, compared with about $2,056 a month for a 30-year fixed-rate loan with a 4.625 percent average rate. (The payment excludes costs like property taxes and insurance.) Because a 15-year loan also has 180 fewer interest payments than a 30-year loan, the borrower with that 15-year loan would pay $194,000 less in interest over the life of the mortgage.

Sacramento Weekend of May 29-31 Things to Do

2009-05-28T16:01:00.000-07:00

Sacramento:

05/29/09 Flamenco Rumba - Mediterranean - Salsa
Visit www.kaweh.com Admission $16

05/30/09 Arts in River Park Festival
www.arts-in-riverpark.org Admission FREE

05/30/09 Curtis Park Neighborhood Yard Sale
www.sierra2.org Admission FREE [Until you buy something ;P]

05/30/09 Art Ark Day: Art & Soul Community Festival
www.crockerartmuseum.org Admission FREE

05/31/09 MIDFEST 2009
www.midfestsacramento.com Admission FREE

Weekend looks to be high 80's low 90's Drink plenty of water and enjoy these sunny days

UPDATE: FHA Decision Could Benefit Home Buyers, Builders

2009-05-28T15:56:00.000-07:00

UPDATE: FHA Decision Could Benefit Home Buyers, Builders

The U.S. government gave ailing home builders a ray of hope, although it also raised concerns lending mistakes that fueled the housing boom - and bust - could be repeated.The Department of Housing and Urban Development's Federal Housing Administration is paving the way for first-time buyers to tap a federal tax credit of up to $8,000 for a downpayment. The announcement, made Tuesday before several thousand real-estate agents attending the National Association of Realtors' Real Estate Summit, could prove a game changer for the sluggish housing market for new and existing inventory.Coming up with money to put down remains a stubborn stumbling block for many eager buyers. But now, the FHA's approved lenders, HUD-approved nonprofits and state and local governmental entities could be permitted to monetize the tax credit that expires Dec. 1 through short-term bridge loans, according to Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development. Right now, buyers have to wait until they file their taxes to receive the credit.More information is expected shortly. HUD declined to comment further Wednesday."There are still lots of details that need to come out," Dan Klinger, president of K. Hovnanian American Mortgage, Hovnanian Enterprises' (HOV) mortgage subsidiary. "If it is what it appears to be, it's going to sell lots of homes."The National Association of Realtors, which has called for the change, could boost its previous estimate that the tax credit will spark at least 300,000 additional sales. The National Association of Home Builders, meanwhile, estimates an additional 160,000 new home sales - 101,000 of which would be first-time buyers who will receive the credit, Donovan said. Another 59,000 existing homeowners will be able to buy another home because a first time buyer purchased their home, he added."For HUD to remove (the downpayment) hurdle, it will open the gate," said NAHB President and Chief Executive Jerry Howard, adding the 160,000 number could double. "This is significant."To appeal to first-timers - considered key to recovery because they don't have an existing home to sell - several builders have begun building smaller and more affordable homes. This comes as interest rates hover near record lows and home prices have plunged.While Donovan labeled the idea "a real win for everyone," it is also drawing some comparisons to the no-money down programs the FHA has worked to shut down. Congress ended a program last year that allowed home sellers to fund downpayments to home buyers through nonprofit groups, and the FHA has blamed that program for an outsized share of loan defaults. Under that program, nonprofit groups would "gift" the 3% minimum downpayment to a home buyer, often funded by the seller of the home. Buyers would move into the home without paying any of their own money for the downpayment."Although it remains to be seen how the program is actually implemented, the plan resembles former seller-funded downpayment assistance programs," wrote housing analyst Ivy Zelman in a research note Wednesday. "We remain concerned that the lenient underwriting standards, low down-payment requirements and now the ability of FHA borrowers to purchase a home without putting any of their own equity into the purchase is creating a tremendous risk for the program and taxpayers in the future."The NAHB's Howard, who would like to see seller-funded DPA reformed, disagreed: "There's no room for even the perception of abuse in this program." Regardless, the FHA would follow patchwork attempts from several states, including New Jersey, Colorado, Tennessee and Kentucky.Some fund downpayments and/or closing costs - possibly getting buyers to the dotted line for nothing out-of-pocket - and offer interest-free bridge loans that essentially convert to piggyback mortgages. The states say they are carefully screening applicants to avoid prolonging or adding to the housing crisis.Missouri led the way earlier this year when it set aside $6 million to offer first-time buyers a loan for up to 6% of the purchase price, capped at $6,750, to cover the downpayment and closing costs. Should the loan - which comes from the agency's general funds - not be repaid, it amortizes monthly over a decade starting July 1, 2010.The Show-Me state welcomed the news."It definitely blessed what the state agencies have been doing, no doubt about that," said Greg Spurgeon, single-family homeownership administrator for the Missouri Housing Development Commission. "We had some lenders that were unwilling to participate in the program until FHA gave this official approval."-By Dawn Wotapka, Dow Jones Newswires; 201-938-5248; dawn.wotapka@dowjones.com(Nick Timiraos contributed to this report.)

Florida Cook County Judge Sets Timing Limits to Foreclosure Judgements

2009-05-28T15:53:00.000-07:00

Dorothy Kinnaird, the Presiding Judge of the Chancery Division of Cook County, has issued a general order that has a direct impact upon the timing of foreclosure judgments as well as orders approving sales.
Summary
Judge Dorothy Kinnaird, Presiding Judge for the Chancery Division of Cook County Illinois issued a general order that has a direct impact upon the timing of foreclosure judgments as well as orders approving sales. Judge Kinnaird's order is limited to Cook County foreclosure cases filed on or after January 1, 2009
Until the court has set and held a case management conference:
No foreclosure case will be permitted to proceed to judgment
No orders to approve sales will be entered in cases in which a judgment has already been found and a sale completed.
The only exception to this rule is if there is a finding of "good cause." The only example of good cause and the only example provided is where the property is vacant and abandoned.
Each foreclosure case will be assigned a case management date in the month of July or August, 2009. No conferences have been set so far.
The Order does not indicate what subjects or issues will be discussed at the conference.
No motions for entry of foreclosure judgment may be filed until the conference has been held. That does not preclude the possibility of an additional case management conference on the matter.
Under the Order, Lender's counsel carries the burden to notify defendants. This will result in a cost for the lender
Case filed prior to January 1, 2009 may proceed to judgment or order approving sale without the requirement for a case management conference being scheduled. However, the additional backlog will likely delay this process anyway.
Although the Order does not prohibit lenders from filing foreclosures or serving borrowers with the complaint and summons, the general impact of this Order is to stay the matter until a case management conference has been scheduled and held.

View rule: http://www.safeguardproperties.com/pub/pdf/20090408081753273_pp1-3.pdf

CNN's Drew Griffin Foreclosure are not sold

2009-05-28T15:50:00.000-07:00

CNN’s Drew Griffin on why millions of foreclosed homes nationwide are so badly damaged they may never be sold.

http://video.aol.com/video-detail/un-saleable-homes/253292954

CNN Money discusses Unemployment Major Factor missed mortgage payment

2009-05-28T15:46:00.000-07:00

http://money.cnn.com/2009/04/13/real_estate/foreclosure_unemployment.reut/index.htm

A recent report from CNN Money discusses a survey from the Boston Federal Reserve how unemployment is a major driver of missed mortgage payments.
Unemployment: Big factor in home defaultsReport indicates unemployment is a major driver of missed mortgage payments, and raises concerns that Presidential plan to modify loans may miss the mark.
NEW YORK (Reuters) -- Unemployment is a bigger reason for missed mortgage payments than high interest rates, according to a study from the Boston Federal Reserve that raises questions about President Obama's plan to stem foreclosures by modifying loans.
Borrowers are more likely to default on their payments because they have lost their jobs or because the price of their homes has plummeted than because of tough terms on their mortgages, the study found.
Loan modifications are not necessarily a better deal for investors either, wrote Boston Fed economists Christopher Foote and Paul Willen, Atlanta Fed economist Kristopher Gerardi and Lorenz Goette, a professor at the University of Geneva.
Their research found that policies that directly help homeowners overcome setbacks such as losing their jobs may be more effective in combating foreclosures.
"Foreclosure-prevention policy should focus on the most important source of defaults," the economists wrote in a study released on the Boston Fed's Web site late last week.
The findings challenge the thinking behind a White House plan announced in February that would give up to 9 million families the chance to refinance their mortgages. President Obama's administration has made loan modifications a central plank of its efforts to tackle the housing crisis.
"One of the most influential strands of thought contends that the crisis can be attenuated by changing the terms of 'unaffordable' mortgages," the economists wrote. But policies that focus on loan modification "face important hurdles in addressing the current foreclosure crisis," they wrote.
The economists suggest that the government could instead replace part of an individual homeowner's lost income from a job loss through loans and grants and help those whose predicament is more permanent become renters.
In addition, investors do not necessarily stand to gain if foreclosure is avoided, they said, and that could help explain the relatively small number of loan modifications to date. Estimates that total gains for investors from modifying rather than foreclosing can run to $180 billion may not take into account a number of key factors.
Investors can lose money when they modify mortgages for borrowers who would have repaid anyway. Borrowers with modified loans may default again later, especially if the reason they were driven to default remains, the economists said.

Indiana Marion County Passed Local Rule on Foreclosure Cases

2009-05-28T15:43:00.000-07:00

The Marion County Indiana Circuit and Superior courts (Indianapolis metropolitan area) passed a local rule, LR49-TR 85 Rule 231, effective in March 2009. The Rule requires that settlement conferences be held between the primary borrower and primary lender in all owner-occupied housing foreclosure cases.
Rule Summary
Foreclosure proceedings will be automatically stayed for 90 days, effective once the case is filed, except for proceeding with service, unless the conference is vacated for good cause.
Once service has been made and confirmed, the court will send out the settlement conference notice to the lender and borrower.
The borrower must respond to the court within 15 days of receipt of the notice to confirm they will be attending the conference. If the court does not receive the confirmation, the conference will be waived.
Both the lender and a representative of the lender who has settlement authority, as well as the borrower, may attend the conference in person or by phone.
The borrower must provide the lender's counsel with the borrower's financial information (7) seven days prior to the conference.
Lender's counsel must provide a written report on the conference results to the court within (5) five days of the conference. If no conference was held, lender's counsel must file a statement explaining the reasons that the conference was not held.
Upon notice, the lender needs to make a loan officer available by phone for each conference.
If the conference is not held within 90 days after service is confirmed, or if the borrower fails to appear for the conference, foreclosure may proceed
The immediate impact of this rule will be to delay foreclosure proceedings, unless the settlement conference is waived.

Florida Mandatory Referral to Mediation

2009-05-28T15:40:00.000-07:00

Judicial Orders (click here) require mandatory referral to mediation for residential mortgage foreclosures for owner-occupied residences in several Florida counties. The defendants must also be offered foreclosure counseling by HUD approved counselors
The orders apply to the Florida Circuit Courts in the counties of Escambia, Santa Rosa, Okaloosa, Walton [Order 2009-18]; Indian River, Martin, Okeechobee and St. Lucie [Order 2009-01]; and Orange [Orange County Order 2009-02]. At the time the foreclosure complaint is filed, plaintiff's counsel must complete and file "Form A", which contains information regarding the property, the owner, contact information for the Lender's loss mitigation department and a Notice of the Homeowner's Right to Mediation. If owner-occupied, plaintiff must file a copy of the mortgage note, mortgage and any PSA that may affect the plaintiff's ability to settle and resolve the foreclosure. Plaintiff's counsel must affirmatively certify whether the property is owner occupied and if so, plaintiff's counsel must certify the identity of the plaintiff or their representative with full settlement authority, and that counsel has personally spoken to the representative and confirmed they have full and complete settlement authority. If certified as owner-occupied, Form A must be electronically transmitted to the Collins Center within the prescribed time (5-10 days as applicable. The Orange County Order differs from the others in that it requires personal communication between Plaintiff's counsel and the Defendant Debtor to determine whether the Defendant is not interested in or is unable to engage in loss mitigation efforts. If so, the Plaintiff may file a prescribed Notice of Good Faith Communication and be excused from compliance with the Orange County Order Mediation civil procedure, fees and requirements are set forth in each Order. The Collins Center will send a list of HUD approved counseling agencies the defendants at the time mediation is scheduled. All named parties must attend the mediation in person or by representative with full settlement authority

Jeffson County, Kentucky sets pilot Foreclosure Mediation Program

2009-05-28T15:36:00.000-07:00

Effective March 30, 2009, the Jefferson County, Kentucky courts (which includes the City of Louisville) have initiated a pilot Foreclosure Mediation Program for owner occupied residential properties. This program will impact all servicers handling defaulted accounts in Jefferson County, and if the program is considered successful, it may be adopted by other Kentucky counties.
Presently, the program only involves new foreclosure actions filed before four of the judges within Jefferson County. However, the Jefferson County Master Commissioner's office anticipates rolling this program out to all divisions of the Court by June or July of this year.Jefferson County's program is considered to be an "opt-in program". In other words, debtors must affirmatively request mediation. This program is anticipated to run parallel to the standard foreclosure process. The request for Mediation is not intended to stall the entry of judgment in the foreclosure, but will delay or stop the actual foreclosure sale if servicers fail to participate in the mediation process.This program uses a state grant to fund social service outreach organizations' efforts to contact borrowers. Retained organizations, working through the Kentucky Housing Corporation, will attempt up to three personal contacts at the residence in order to notify borrowers of the program. If contact is made with the borrowers, these housing counselors will work with the borrowers to complete a request for mediation and a financial package to be provided to their mortgage servicer.Completed packages will be forwarded to the attorney for the servicer, and a hearing will be set at least two weeks from the date the package is delivered to the attorney. The servicer's attorney will be required to forward the completed package to their client to review for possible loss mitigation options.The mediation hearings will be conducted every Thursday morning before the Master Commissioner. Counsel for the servicer will be required to be present, and a representative of the servicer, with true settlement authority, must be available by telephone. In addition, the debtor and the housing counselor must be present, along with a pro-bono attorney to represent the debtor.If the servicer participates in this process, then the foreclosure sale may occur if no settlement can be reached. The Court will encourage servicers to mitigate loans in a way that permits borrowers to stay in their homes, or to allow the borrower time to arrange alternative housing and exit the property in a "more graceful" manner.Our firm is encouraging all servicers to cooperate to the fullest extent in this program. If servicers provide staff to adequately review financials prior to the mediation conference, and give their counsel direct access to dedicated loss mitigation employees with true settlement authority, this program should allow servicers and borrowers to reach settlements in many cases that will benefit all parties concerned.Proactive involvement in this process should increase cure rates, successful loan modifications, forbearance plans, and Deeds-in-Lieu of Foreclosure. In many cases, active participation in this program may drastically reduce loss severity on defaulted accounts, shorten timelines to complete the foreclosure process, and may eliminate the need to manage a larger pool of REO properties in Jefferson County.Servicers who fail to cooperate to the fullest extent with this program, or who are perceived by the Court as being uncooperative, will undoubtedly find prosecution of their cases in Jefferson County to be more difficult, and will likely suffer from substantial timeline delays and possible adverse publicity in the community.The Court has expressed a willingness to work with law firms and servicers to ensure that the financial package that is completed includes all information and documentation that may be necessary to consider a loss mitigation proposal. The Master Commissioner office has asked us to forward them any specific information or documentation requirements that servicers might have. Servicers will be required to accept and review the financial package in the format the Court sets forth. As a result, we are encouraging all servicers to forward us copies of their required financial packages, so that we may provide them to the Court and request that they include the necessary information in the Court package.
If you would like a copy of the court order or if you have any questions regarding this topic, they can be addressed to Richard Nielson at rnielson@nsattorneys.com, or you may contact Rich directly at (859) 655-8010

Iowa sets new laws on foreclosure notices

2009-05-28T15:19:00.000-07:00

On April 9th, Governor Chet Culver signed SF 364 titled, "an Act relating to civil actions including certain limitations on actions, judgments, and executions and including actions relating to the foreclosure of real estate mortgages, and providing effective date and applicability provisions".
Additional information is provided in the following article from the Quad-City Times.
Iowa Senate votes to help people facing foreclosure
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DES MOINES — The Iowa Senate voted Tuesday to provide more leeway for a growing number of Iowans facing foreclosure because they are behind in making their mortgage payments.
Senate File 364, which passed on a 50-0 vote, is designed to improve the opportunity for mortgage holders to work with their lenders to stave off civil default judgments.
“This is a major issue facing Iowans,” said Sen. Rob Hogg, D-Cedar Rapids. “This bill will help us address the foreclosure crisis and provide additional protections for the homeowner whose property is being foreclosed.”
The number of Iowa properties subject to civil mortgage foreclosure action has nearly doubled from 5,507 in 2002 to nearly 11,000 last year, according to the preliminary estimates.
The bill requires mediation notices “prior to commencing an action” on a residence — a provision that is effective through July 1, 2011. The legislation allows for a 60-day delay in foreclosure sales, and it also provides that lenders may rescind foreclosure action to negotiate a voluntary workout.
Hogg said the proposed change should help reduce unnecessary cost to parties involved in foreclosure proceedings. The bill also should help communities by reducing bureaucratic red tape that stops foreclosed property from being resold or returned to productive use, he said.
In separate action, the Senate voted 50-0 to establish licensing requirements for mortgage loan originators to ensure the lending industry is operating without unfair, deceptive or fraudulent practices.
“Senate File 355 toughens state laws governing mortgage bankers and brokers to fight shady operators who helped cause the national mortgage mess,” said Sen. Swati Dandekar, D-Marion, the bill’s floor manager.

Entire Bill: http://coolice.legis.state.ia.us/Cool-ICE/default.asp?Category=billinfo&Service=Billbook&menu=false&hbill=SF364

Illinois SB 2513 New Requirement on lenders & Servicers

2009-05-28T15:16:00.000-07:00

Illinois SB 2513The Governor of Illinois has officially signed Bill 2513 into law, which provides new requirements on lenders and servicers.
SB 2513 applies to all loans secured by residential real property, except for those loans that the borrower has previously filed bankruptcy or which the property is not the borrower's principal residence.
SB 2513:
If a residential real property loan falls into default by more than thirty days, the mortgagee must send a "Grace Period Notice."
The law further imposes a second grace period that could extend the original grace period by up to an additional thirty days under certain circumstances.

The Governor of Illinois has officially signed Bill 2513 into law, which provides new requirements on lenders and servicers. The new requirements are effective immediately. Therefore, the new requirements must be adhered to beginning on April 6, 2009.
Applicable to Loans Secured by Borrower's Principal Residence OnlyThe law will apply to all loans secured by residential real property, except for those loans that the borrower has previously filed bankruptcy or which the property is not the borrower's principal residence. The law will apply only once per loan (i.e. if the law is complied with for a previous default, there is no requirement to comply with the law on any subsequent defaults).
Required Thirty Day "Grace Period Notice" If a residential real property loan falls into default by more than thirty days, the mortgagee must send a "Grace Period Notice." This Notice must be sent as a separate letter than any default or breach letter, but can be sent at the same time as those other letters. A foreclosure cannot be filed once the law goes into effect unless this Notice has been sent. We advise sending the "Grace Period Notice" in a separate envelope than the breach or demand letter.
The Notice must be formatted in a specific way: headed in 14-point type, entitled "GRACE PERIOD NOTICE" and including the date it was sent. The Notice must further state the following in 14-point type:
"YOUR LOAN IS MORE THAN 30 DAYS PAST DUE. YOU MAY BE EXPERIENCING FINANCIAL DIFFICULTY. IT MAY BE IN YOUR BEST INTEREST TO SEEK APPROVED HOUSING COUNSELING. YOU HAVE A GRACE PERIOD OF 30 DAYS FROM THE DATE OF THIS NOTICE TO OBTAIN APPROVED HOUSING COUNSELING. DURING THE GRACE PERIOD, THE LAW PROHIBITS US FROM TAKING ANY LEGAL ACTION AGAINST YOU. YOU MAY BE ENTITLED TO AN ADDITIONAL 30 DAY GRACE PERIOD IF YOU OBTAIN HOUSING COUNSELING FROM AN APPROVED HOUSING COUNSELING AGENCY. A LIST OF APPROVED COUNSELING AGENCIES MAY BE OBTAINED FROM THE ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION."
No other language should be included in the body of the Notice, but it must also include the following information:
The consumer hotline number of the Illinois Department of Financial and Professional Regulation: 800-532-8785;
The web address of the Illinois Department of Financial and Professional Regulation: http//www.idfpr.com
A phone number for contacting the mortgagee;
A fax number for the mortgagee; and
The mailing address of the mortgagee.
The Notice must be sent via first class U.S. Mail and addressed to the borrower at the property address securing the loan.
Possible Second Thirty-Day Grace Period The law further imposes a second grace period that could extend the original grace period by up to an additional thirty days. If at any time during the above described thirty day original grace period, an approved counseling agency provides written notice to the mortgagee that the borrower is seeking counseling services, no foreclosure action may be initiated for thirty days after the date of the counseling agency notice. An approved counseling agency is defined as one that has been approved by the U.S. Department of Housing and Urban Development.
During this thirty-day period, it is expected that the mortgagee and counseling agency will work towards agreeing to a "sustainable loan workout plan." A "sustainable loan workout plan" may include, but is not limited to, the following:
Temporary suspension of payments;
Lengthened loan term;
A lowered or frozen interest rate;
A principal write down;
A repayment plan to pay the existing loan in full;
Deferred payments; or
Refinancing into a new affordable loan.
Effect of the Law Once the mortgagee sets up procedures to comply with this law, we do not expect it to result in substantial delays. If the "Grace Period Notice" is sent contemporaneously with the breach or default letter, the new thirty day grace period will be merged into an existing grace period that most mortgagees already have established with the breach letters.
However, since the law goes into effect immediately upon signing and since no new foreclosures can be filed without first complying with the required "Grace Period Notice," an expected thirty day delay will occur. This delay could be extended to a total of up to sixty days if the mortgagee receives notice that the borrower is working with an approved counseling agency.
Therefore, we urge you to begin sending the "Grade Period Notice" on each and every account that a breach or demand letter is sent to a borrower. Further, the "Grade Period Notice" should be mailed immediately on all accounts that have been referred for foreclosure so that there is no further delay beyond the thirty days required by the statute. These two steps will greatly minimize any further delays.
If you have any questions on this information, please contact Mr. Michael S. Bablo, Esq.
Michael is an associate in the Real Estate Default Group of the Chicago office focused on foreclosure services for Weltman, Weinberg & Reis Co., L.P.A. He can be reached at (312) 253-0617 or via e-mail at mbablo@weltman.com.

See Bill Entirety http://www.ilga.gov/legislation/95/SB/PDF/09500SB2513enr.pdf

Imported Chinese Drywall may have harmful materials EPA discusses

2009-05-28T14:21:00.000-07:00

http://www.chinesedrywall.com/uploads/EPA_Analysis.pdf

The U.S. Environmental Protection Agency (EPA) confirmed Chinese drywall testing found that samples of wallboard imported from China between 2004 and 2008, contains certain potentially harmful chemicals that are not found in drywall manufactured in the United States.
To view the full EPA Analysis, please click on the following link:EPA Analysis As discussed below, the Senate Committee on Commerce, Science, and Transportation convened a subcommittee hearing on Health and Product Safety Issues Associated with Imported Drywall on Thursday, May 21, 2009.
To view a webcast of the Hearing, please click on the following link:Health and Product Safety Issues Associated with Imported Drywall
A request for $2 million in emergency funding failed to move forward in the U.S. Senate, however the Consumer Product Safety Commission and other federal agencies will continue investigating the potential effects of imported drywall.

Fannie Mae Upate on HAMP program and misc info

2009-05-28T14:20:00.000-07:00

FHLMC Bulletin 2009-13
Wednesday, 27 May 2009
Freddie Mac has issued the following Single Family Seller/Servicer Guide Update regarding Bulletin 2009-13. With this Single-Family Advisory e-mail and today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2009-13, we are announcing multiple servicing updates, including:
Updates to Requirements for the Home Affordable Modification Program (HAMP)
Enhancements to Electronic Default Reporting (EDR) for all Mortgages that Have an Alternative to Foreclosure Being Pursued
Revisions to Servicer Performance Profile Default Management Weighting
Changes to Tier One Premium Awards
Revisions to Servicing Requirements
Information on Recent Treasury Announcements
Updates to Requirements for the Home Affordable Modification ProgramWith today’s Guide Bulletin, we are:
Requiring Servicers to solicit borrowers who are 31 days or more delinquent on or after July 1, 2009, by no later than the 50th day of delinquency; also providing additional guidance on borrower solicitation by phone or electronic means.
Permitting the collection of certain borrower loss mitigation information and documents electronically.
Providing additional guidance on the collection of Government Monitoring Data using the revised HAMP Hardship Affidavit that was posted on April 21, 2009.
Revising the requirements for reporting and remitting a payoff of a mortgage with a partial principal forbearance and revising the required monthly Spreadsheet for Reporting Mortgages with a Partial Principal Forbearance template.
Beginning June 1, 2009, Servicers may report a number of new EDR default action codes and a new default reason code that will become mandatory reporting as of October 1, 2009. Enhancements to Electronic Default Reporting for All Mortgages that Have an Alternative to Foreclosure Being PursuedWe are introducing new EDR default action codes in order for Servicers to provide us with information on mortgages they are pursuing an alternative to foreclosure. Some of the new EDR default action codes are specific to HAMP, while others apply to all mortgages, including current mortgages, for which the Servicer is pursuing an alternative to foreclosure. We are also adding the new default reason code “HMP” so Servicers can identify which loans that are in a Home Affordable Modification Trial Period. This new default reason code must be reported in conjunction with the “09-Forbearance” default action code. Servicers are required to use these new EDR codes beginning October 1, 2009. Guide Exhibit 82, Electronic Default Reporting Transmission Code List, has been updated to reflect these new codes and an updated version of the EDR Quick Reference Guide will be posted on the Learning Center by May 31, 2009.Revisions to Servicer Performance Profile Default Management WeightingUnprecedented market conditions and a crucial new role for Servicers in helping at-risk and delinquent borrowers through the Making Home Affordable program require changes to the Servicer Performance Profile. To maintain the Profile as a meaningful, accurate measurement and guide to continual improvement of servicing performance, we are adjusting the weighting of the Default Management metrics with your July 1, 2009, performance. The revised Default Management metrics will focus more on your loss mitigation, inventory management, and data integrity performance and less on collections management performance. Servicers will continue to be rated on the same Servicer Performance Profile weighting under Investor Reporting and Remitting.As the market continues to adjust this year, we will continue to evaluate the Servicer Performance Profile. If we find that the program warrants additional revisions, we’ll communicate those changes to you.Changes to Tier One Premium AwardsIn light of the current market conditions, with this Single-Family Advisory e-mail, we are discontinuing some of the incentives that correspond to the Tier One Premium Awards for all Servicers’ 2009 performance.
Effective immediately, we are no longer offering monetary performance incentives for Tier One Platinum, Tier One Gold, and Hall of Fame Servicers. In addition, both Tier One Platinum and Tier One Gold’s technology compensation will not be offered in 2009.
We will, however, continue to provide Tier One Platinum Servicers with a $10,000 non-monetary wavier to use toward EarlyIndicator® renewal fees or to acquire the tool and a $1,000 non-monetary waiver to use toward Freddie Mac training and events. Tier One Gold Servicers will also continue to receive a $500 non-monetary waiver to use toward Freddie Mac training classes and events. All Tier One waivers for transfer of servicing and database change fees will remain in effect.
We will not provide public promotion of the Tier One Premium Awards for 2008 and 2009 performance. We will, however, continue to notify you of your Tier One and Hall of Fame status through your servicing representative.
Our robust Workout Incentive Program, which is available to Servicers regardless of their Tier rating, remains available to help offset the costs of pursuing alternatives to foreclosure. Servicers will continue to receive monetary incentives, depending on the type of successful workout, in accordance to the Guide.
As we are with the Servicer Performance Profile, we will continue to evaluate the Tier One Premium Awards throughout the year. If the program requires updates, we’ll communicate those changes to you. Revisions to Servicing RequirementsWith today’s Guide Bulletin, we are also:
Updating the Loss Mitigation Transmittal Worksheet to include data elements specific to HAMP and incorporating it into the Guide as new Form 1128, which is now an interactive Microsoft® Excel spreadsheet.
Updating Guide Chapter B65 to reflect that a HAMP-eligible borrower must first be considered under Guide Chapter C65. Servicers must implement the requirements for HAMP and also directs them to consider borrowers who are in a 0 to 30 day delinquency status to first be considered for a Freddie Mac Relief Refinance MortgageSM under Guide Chapter 24. If the borrower is not eligible for a modification under HAMP, the Servicer must then consider the borrower for other alternative to foreclosure options outlined in Guide Chapter B65.
Announcing new, standardized form subordination agreements, which were developed by Freddie Mac and Fannie Mae in coordination with the American Land Title Association. These standard form agreements are designed for lenders and Servicers to use to resubordinate subordinate liens when working with borrowers on modifications or refinances, including loan modifications under HAMP and Freddie Mac Relief Refinance Mortgages. The new agreements will be available on our Uniform Instruments Web page by June 1. Information on Recent Treasury AnnouncementsThe U.S. Department of the Treasury recently announced that they are expanding HAMP to include requirements on the use of short sales and deeds-in-lieu of foreclosure in the event a borrower cannot complete the modification process. They also announced a second lien program to help struggling borrowers lower their monthly payments on their second mortgage. We are currently working through the policy and operational guidelines, and we will communicate any necessary changes to our requirements in a future Guide Bulletin.

Final Score: $8,000 for Homebuyers

2009-05-06T13:17:00.000-07:00

Les Christie, CNNMoney.com staff writer
There's a nice windfall for some homebuyers in the economic stimulus bill. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes.
A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of withholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:
“I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?”
The short answer? Yes, Billings would get back the $8,000 plus what he'd overpaid. The long answer? It depends. Here are three scenarios:
Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.
Scenario 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll withholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.
Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll withholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.
To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as “first time” buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.
Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)
Applying for the credit will be easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
Lukewarm receptionThe housing industry is somewhat pleased with the result because the stimulus plan improves on the current $7,500 tax credit, which was passed in July and was more of a low-interest loan than an actual credit. But the industry was also disappointed that Congress did not go even further and adopt the Senate's proposal of a $15,000 non-refundable credit for all homebuyers.
“[The Senate version] would have done a lot more to turn around the housing market,” said Bernard Markstein, an economist and director of forecasting for the National Association of Homebuilders (NAHB). “We have a lot of reports of people who would be coming off the fence because of it.”
Even so, the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.
The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. “I think there are many homeowners who would be trading-up but they have had no buyers for their own homes,” Yun said.
Who won't benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle - they still have to close the sale before claiming the bonus.
One state, Missouri, is trying to get around that problem by creating a short-term loan on the tax credit of up to $6,750. The state would loan borrowers the money so they could use it at closing as part of the down payment. Then, when the buyers receive their tax credit from the IRS, they pay back the state. Other states may follow with similar programs, according to NAHB's Dietz.
Many may look at the tax credit as a discount on the home price, according to Yun. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling, he added.
And it provides a nice nest egg for the often-difficult early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home - a lawnmower, a rug, a sofa - and, in that way, help stimulate the economy.
Reprint courtesy of CNNMoney.com

Wachovia asks REALTORS to help with Short Sales

2009-05-04T08:41:00.000-07:00

Distressed homeowners with Wachovia, formerly World Savings, as a lender are seeing a glimmer of home when it comes to saving their homes from foreclosure.
Unlike other banks, Wachovia has short sale managers in the field to talk to distressed homeowners and help them explore options before going to foreclosure. The process is simple and straight forward for the homeowner.
The Wachovia Short Sale manager meets with the homeowner to determine that there is truly a hardship. The seller may be asked to provide a financial statement as well as other information such as tax returns. The Short Sale Manager assess the situation, orders a Brokers Professional Opinion, and then is able to approve the hardship in just a matter of days. Of course if there is a chance that the seller may qualify for a loan modification, that is also an option.
This does several things for the distressed homeowner:
It gives them piece of mind knowing that they are dealing with their lender directly and not some third party collection team;
It gives them faith in their Realtor, and the industry, by seeing the two entities work together to provide help and assistance;
It stops the foreclosure process and takes away the burden and the embarrassment of a foreclosure;
It expedites the short sale process into a period of weeks, as opposed to months, allowing the homeowner to move on with their lives;
It allows the homeowner to reestablish credit faster than if they had to go to through the foreclosure process.
This also helps Wachovia:
Wachovia's short sale managers are a great public relations team for Wachovia to the industry, and to distressed homeowners;
It ultimately saves Wachovia time and money by properly pricing the home and determining the hardship from the start - as opposed to the extended process, which results in a greater loss, especially in a declining market.
Wachovia should be applauded for their efforts and held up as an example for other financial institutions. Working together only helps the distressed homeowner and our industry.

Currently have a World Savings, Wachovia, Golden West, Home Loan and your property is upside down. You would like to List your property than please contact me today.

Sacramento Road Closures UPDATED TODAY

2009-05-01T20:23:00.001-07:00

Click here to see if your effected by the current road closures in Sacramento, CA. http://www.msa.saccounty.net/Roads/default.asp

Multiple Locations (See Details for Street Names)
April 13 to June 227:30 AM to 4:30 PM
Lane ClosureThere will be multlple lane closures keeping at least one lane open in each direction at all times. Streets affected are: Dudley Blvd from Howard Street to Freedom Park; Watt Avenue to Price Avenue on James Street; Watt Avenue to Luce Avenue on Palm Avenue; Watt Avenue to Luce Avenue on Peacekeeper; Dudley Blvd./ James Way Intersection; Arnold Way from James Street to Howard Street; Dudley Blvd/Peacekeeper Way Intersection; Dudley Blvd/Palm Street Intersection. REASON FOR CLOSURES: ADA Ramp replacement, paving and Slurry seal. DISTRICT:1

For more road construction projects in your area or road clsures please click on the link above.

County and City of Sacramento Office of Emergency Services Encourages the Public to Call 2-1-1 for Swine Flu Information

2009-04-30T07:51:00.000-07:00

Sacramento County Public Health is receiving hundreds of calls from concerned residents. The County and City of Sacramento encourage all residents to call 2-1-1
(or 1-800-500-4931) for all non-emergency questions and concerns about swine flu. Callers will speak with a live 2-1-1 representative who can answer questions and provide information about swine flu.
2-1-1 Sacramento is the region’s primary place for 24/7, free community health and disaster information. 2-1-1 Sacramento is working in partnership with the Sacramento Office of Emergency Services (OES) to provide current information about swine flu, especially in the Sacramento area.
If you are showing symptoms of illness and need non-emergency medical attention you should consult your physician.
Sacramento County Health Officer Dr. Glennah Trochet continues to recommend that you:
Stay at home when you are sick with flu-like illness which means a fever of 100.4 degrees or higher, experience achiness, a sore throat and/or cough;
Cover your cough or sneeze by using your sleeve or a tissue;
Wash your hands frequently to prevent spreading illness.
More information on swine flu can be found at www.scph.com.

Sacramento Define Swine Flu?

2009-04-29T08:41:00.000-07:00

Swine Flu
Inquire about the availability of documents in alternate formats.
Swine Flu is a respiratory disease typically found in pigs. However, human Swine Flu cases can and do happen. Swine Flu has been detected in the United States, and locally in Sacramento County.
Use the following information to learn the symptoms, treatment and prevention of Swine Flu, as well as news about it’s occurrence locally and nationally.
Swine Flu and You – Description of the Swine Flu symptoms, treatment, and prevention from the Center for Disease Control
Swine Flu Information – Comprehensive resource from the State of California about Swine Flu.
Swine Flu in Sacramento County – Update from the Public Health Division
Swine Flu Investigation – National and international information from the Center for Disease Control
The County and City of Sacramento recommend you call 2-1-1 for general information about the swine flu. If you believe you have flu symptoms, please call your doctor, or 9-1-1 for a life threatening emergency. By calling 2-1-1 (or 1-800-550-4931) your questions will be answered by a representative who will have the latest public health information.

Click on the following link to gather more information on the highlighted links above:
http://www.sacramentoready.org/SAC_Sacready_DF_SwineFlu

Are You Prepared For An Emergency? Sacramento County

2009-04-29T08:37:00.000-07:00

Visit the following link to download any of the highlighted links below: http://www.sacramentoready.org/default.htm

Sacramento Ready is a regional partnership of local government working to provide emergency preparation and response information to people in the Sacramento area.
Swine Flu
Swine Flu cases have been confirmed in Sacramento County. Find out about the symptoms, treatments, and prevention of swine flu, as well as information about where cases have occurred. Get details on the Swine Flu information web page.
If you have specific questions not answered by our resources online, you can get more information by calling 2-1-1 in the Sacramento region. Twitter users can sign up to receive periodic messages from Sacramento County's Public Health Division at www.Twitter.com/SacPublicHealth.
Be Prepared as the Seasons Change
The Sacramento region is warming into springtime weather, but we may still see showers in April and May. Get information about preparing your home for the upcoming seasonal change.
Prepare an emergency kit
Make a communication plan for your family
Plan together with neighbor helping neighbor
Prepare in advance – information for seniors and people with disabilities
Learn more emergency preparation tips in the Are You Prepared Guide.
Sacramento County Emergency Operations and Evacuation Plans
The Emergency Operation Plan provides you with information about how local officials will respond in the event of an emergency. As emergencies often cross jurisdictional lines, this report takes into account the many agencies within the region charged with guiding our operations, and offers valuable insight into the multi-pronged approach we would take to provide for your health and safety. Read the Sacramento County Emergency Operations Plan. (6MB)
In the event of an emergency that requires the County to evacuate citizens from an impacted to a safe area, there are agreed-upon strategies already in place to ensure the process is handled as smoothly as possible. This plan also takes into account the many people with special needs who might need additional support in an evacuation. Read the Sacramento County Evacuation Plan.

Modifying Loans Under the Affordable Home Modification Plan‏

2009-04-28T15:22:00.000-07:00

This will only apply to the first mortgage on your primary residence.

To qualify, you must:
Have originated your mortgage before Jan. 1, 2009.
Be an owner-occupant.
Have an unpaid balance that is equal to or less than $729,750 (for a single-family home).
Have trouble paying your mortgage due to financial hardship. That could be because you have had an increase in your mortgage payments, or because your income was reduced or you suffered a hardship (like medical problems) that increased your bills, or, you can show that you soon will be unable to make your payments. You will be required to enter an affidavit of financial hardship.
Your monthly mortgage payment must also be more than 31% of your gross (pre-tax) monthly income.To seal the deal, you must successfully complete a three-month trial period at the modified rate. If you make all payments on time, you will keep this lower rate that will be fixed for five years.

What if I am About to be Foreclosed On?
The foreclosure process will stop while you’re being considered for the program (or for any alternative foreclosure prevention option).

What Will it Cost?
Under the program, the borrower does not have to pay any charges or fees. Any fees are supposed to be paid by the company that holds the loan, and the servicer of the loan will pay for your credit report.

Is There a Deadline?
New borrowers will be accepted until Dec. 31, 2012.
How Do I Start?
Gather these required loan modification documents and call your mortgage servicer (the company you make payments to). Your servicer is not required to join the program, but the government hopes that the incentives, along with the fact that this could help millions avoid defaulting on their mortgage, will motivate them to participate.

Home Affordable Modification Program Guidelines

FULL DETAILS CLICK THE FOLLOWING LINK PRINT & REVIEW:

http://www.ustreas.gov/press/releases/reports/modification_program_guidelines.pdf

Wisconsin State Tenant Protection Act help foreclosed owners stay in Home 90 days

2009-04-28T15:15:00.000-07:00

The Wisconsin Economic Recovery Act, Act 2 was recently enacted, with an effective date of March 7, 2009. Sections 847 through 850 of Act 2 contain the Tenant Protection Act.
The Act requires that the plaintiff in a foreclosure action provide notice to tenants three different times during the foreclosure.
The first notice must be provided to tenants within five (5) days of filing the foreclosure action. The next notice must be provided within five (5) days of the Judgment Entry showing the redemption expiration date. The third notice is sent once notice of confirmation of hearing is scheduled. This is notice of the hearing date and time. All notices must be sent by Registered Mail or personal service.
The Act also gives a tenant the right to remain in a foreclosed property for ninety (90) days after the foreclosure process has concluded. There is a $250.00 penalty, plus attorney fees for noncompliance.

http://www.legis.wi.gov/2009/data/acts/09Act2.pdf

Click the link above to learn more about this law.

Reissuance of the Introduction of the Home Affordable Modification

2009-04-21T22:02:00.000-07:00

This Announcement (09-05R) is a reissuance of Announcement 09-05, which was originally
issued on March 4, 2009. This Announcement provides additional policy clarification and
instruction and supersedes Announcement 09-05 in its entirety. Policy clarifications and
new instructions that are incorporated into this Announcement are identified by bold type.
(Other minor editorial changes are included in this document but not identified in bold.)
Background
On February 18, 2009, President Obama announced the Homeowner Affordability and Stability
Plan to help up to 7 to 9 million families restructure or refinance their mortgage loans to avoid
foreclosure. As part of this plan, the Treasury Department (Treasury) announced a national
modification program aimed at helping 3 to 4 million at-risk homeowners – both those who are
in default and those who are at imminent risk of default – by reducing monthly payments to
sustainable levels. Treasury issued uniform guidance for loan modifications across the mortgage
industry in Supplemental Directive 09-01 on April 6, 2009. This Announcement provides
guidance to Fannie Mae servicers for adoption and implementation of the Home Affordable
Modification Program (HMP) for Fannie Mae loans.
Under the HMP, servicers will use a uniform loan modification process to provide eligible
borrowers with sustainable monthly payments. The HMP implementation guidelines set forth in
this Announcement apply to all eligible one- to four-unit owner-occupied properties securing
Fannie Mae portfolio mortgage loans and MBS pool mortgage loans guaranteed by Fannie Mae.
The HMP will replace the Streamlined Modification Program introduced in Announcement 08-
33 and the Early Workout™ program announced in Announcement 08-31. The HMP will expire
on December 31, 2012.
All Fannie Mae-approved servicers must participate in the program for all eligible Fannie Mae
portfolio mortgage loans and MBS pool mortgage loans guaranteed by Fannie Mae.
Announcement 09-05R Page 2
Servicers may also elect to participate in the HMP for other qualifying mortgage loans that:
 are not subject to Fannie Mae’s credit loss guarantee, and
 are held by servicers in their own portfolios or are serviced for other portfolios or
securitization trusts or investors.
These other qualifying mortgage loans are referred to as Non-GSE Mortgages in this
Announcement.
As announced in Supplemental Directive 09-01, in order for a servicer to participate in the HMP
with respect to Non-GSE Mortgages, the servicer must execute a servicer participation
agreement and related documents with Fannie Mae in its capacity as financial agent for the
United States (as designated by Treasury).
This Announcement also introduces a new HomeSaver Forbearance™ foreclosure prevention
option and a new Fannie Mae loan workout hierarchy. The HomeSaver Forbearance provides an
additional foreclosure prevention option for borrowers who are NOT eligible for the HMP.
This Announcement covers the following topics:
 HMP Eligibility
 Underwriting
 Modification Process
 Servicer Delegation, Duties and Responsibilities
 Reporting Requirements
 Fees and Compensation
 FHA HOPE for Homeowners
 Compliance
 HomeSaver Forbearance
 New Workout Hierarchy
 Retirement of the Streamlined Modification Program (SMP) and the Early Workout Program

To read the entire document with detailed information please visit the link below:
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0905.pdf

Freddie Mac Release a bulletin

2009-04-21T21:58:00.000-07:00

Freddie Mac has issued the following Single Family Seller/Servicer Guide Update regarding Bulletin 2009-10
Today we issued Single-Family Seller/Servicer Guide Bulletin 2009-10, which announces important updates to requirements for the Home Affordable Modification program, including new criteria for determining whether a borrower is in imminent default, information and tools for Servicers to perform the required Net Present Value (NPV) test, and other changes to borrower eligibility and underwriting requirements.
Criteria for Determining Imminent Default
The Guide Bulletin provides criteria for determining whether a borrower who is current or less than 31days delinquent, and claims a hardship, is in imminent default. Using the process, requirements, and definitions outlined in our revised Guide Section C65.4, Servicers must consider the borrower for a modification under the Home Affordable Modification program if, after using the screening criteria outlined in this Guide section, the Servicer determines:
The borrower’s Debt Coverage Ratio is less than 1.20 and
The borrower’s cash reserves are less than three times the current monthly PITIA payment.
The Borrower Qualification Worksheet may be used to determine if a borrower, who is current or less than 31 days delinquent, is in imminent default. The updated Freddie Mac Borrower Qualification Worksheet will be available as a secure link on our Home Affordable Modification program Web page on Thursday, April 23. In addition, Freddie Mac is developing an automated solution to assist Servicers with the imminent default evaluation, and it will be available at a later date.
Net Present Value Calculations
All mortgages that meet Home Affordable Modification program criteria must be evaluated using the standardized NPV test that compares the NPV result for a modification to the NPV result for not modifying the mortgage. Today’s Bulletin and newly revised Guide Section C65.6 include detailed requirements for performing this test. These requirements include revisions for determining the amount of principal forbearance that may be permitted in order to achieve the Target Payment.
To assist Servicers, we are also introducing the Net Present Value (NPV) Calculator. The NPV Calculator is available on the Home Affordable Modification Servicer Web page. A user ID and password are required for access to the Servicer Web page. Servicers must complete and submit the HMP Registration Form to obtain a user ID and password.
Additional Updates
With today’s Bulletin, we are also announcing revisions and updates to these and other program requirements:
Revising requirements for verification of income when the Servicer uses stated income to create and send the borrower a Trial Period Plan, along with revising the income documentation requirements.
Revising the timeframe for when a borrower must respond to the Trial Period Plan offer package from 14 days to 30 days, and providing additional guidance if the borrower does not submit the required documents by the specified deadline.
Updating the definition of Interest Rate Cap.
Updating requirements for Servicers to continue to report “full-file” status reports to the four major credit repositories when borrowers enter the Trial Period, with criteria for borrowers who are current and borrowers who are delinquent when they enter the Trial Period.
Revising collateral valuation requirements used for the NPV test and for determining the mark-to-market LTV ratio.
Revising eligibility requirements to allow modifications of FHA, VA, and RHS mortgages, in accordance with guidance issued by the respective agency.
Revising documentation requirements for verifying that eligible mortgages are occupied primary residences.
Updating requirements for verifying installment debt and other expenses that must be included in the calculation of the borrower’s total monthly debt payment-to-income ratio.
Providing further guidance on the Servicer’s “Pay for Success” and Borrower’s “Pay for Performance” incentive fees.
Revising the Hardship Affidavit to now include a section for the collection of government monitoring data.
Adding requirements for reporting data to Fannie Mae in its capacity as Financial Agent.
Adding requirements provided by Freddie Mac, the Compliance Agent for the U.S Department of the Treasury.
Reminders
As a reminder, Servicers should continue to:
Suspend all foreclosure sales on owner-occupied properties for borrowers who may be or are eligible for a modification under the Home Affordable Modification program.
Report weekly Home Affordable Modification activity each Monday using the Program Performance Reporting Spreadsheet.

Please read the original bulletin: http://www.freddiemac.com/sell/guide/bulletins/pdf/bll0910.pdf

States had the highest foreclosure

2009-04-21T09:59:00.000-07:00

Which states had the highest foreclosure rates in the first quarter?
1. Nevada: 1 in 27 homes
2. Arizona: 1 in 54 homes
3. California: 1 in 58 homes
4. Florida: 1 in 73 homes
5. Illinois: 1 in 135 homes
6. Michigan: 1 in 136 homes
7. Georgia: 1 in 138 homes
8. Idaho: 1 in 147 homes
9. Utah: 1 in 151 homes
10. Oregon: 1 in 153 homes

President Barack Obama's ambitious plan to rescue the housing market

2009-04-20T07:38:00.000-07:00

At the heart of the President Barack Obama's ambitious plan to rescue the housing market is the conviction that restructuring distressed mortgages will keep struggling borrowers in their homes and help insert a floor beneath plummeting property values. With $75 billion dedicated to reworking troubled loans, that's a big bet—especially considering that a top banking regulator said last December that almost 53 percent of loans modified in the first quarter of 2008 went bad again within six months. But supporters argue that mortgage modifications need to be properly engineered to work—and many early ones weren't. To that end, the Obama administration on Wednesday unveiled fresh details on its plan to restructure at-risk loans and help as many as four million home owners avoid foreclosure. Here are seven things you need to know about Obama's loan modification program.
1. Payments, not prices: The plan centers on the belief that struggling borrowers will stay in their homes—even as values decline sharply—as long as they can make their monthly payments. Although not everyone agrees with this, billionaire investor Warren Buffett endorsed the philosophy in his most recent letter to shareholders. "Commentary about the current housing crisis often ignores the crucial fact that most foreclosures do not occur because a house is worth less than its mortgage (so-called “upside-down” loans)," Buffett wrote. "Rather, foreclosures take place because borrowers can’t pay the monthly payment that they agreed to pay."
2. Thirty-one percent: To that end, the administration's plan requires participating loan servicers to reduce monthly payments to no more than 38 percent of the borrower's gross monthly income. The government would then chip in to bring payments down further, to no more than 31 percent of the borrower's monthly income. In lowering the payment, the servicer would first reduce the interest rate to as low as 2 percent. If that's not enough to hit the 31 percent threshold, they would then extend the terms of the loan to up to 40 years. If that's still not enough, the servicer would forebear loan principal at no interest. The plan does not, however, require servicers to reduce mortgage principal, which Richard Green, the director of the Lusk Center for Real Estate at USC, considers a shortcoming. "For underwater loans, if you don't write down the balance to be less than the value of the house, people still have an incentive to default," Green says. "Writing down the principal first instead of last—which is what [the Obama administration is] proposing—makes sense to me."
3. Cash incentives: To encourage participation, servicers will be paid $1,000 for each modification and will get an additional $1,000 payout each year for as many as three years, as long as the borrower continues making payments. Borrowers, meanwhile, can get up to $1,000 knocked off the principal of their loan each year for as many as five years if they make their payments on time. Neither party can receive the cash incentives until the modified loan payments have been made for at least three months.
4. Financial hardship: The Obama administration is pitching its plan as an effort to help responsible homeowners ensnared in the historic housing slump and painful recession—not speculators. As such, only owner-occupied, primary residences with outstanding principal balances of up to $729,750 are eligible. Occupancy status will be verified through documents, such as the borrower's credit report. In addition, the program is designed to target homeowners who are undergoing "serious hardships"—such as a loss of income—which have put them at risk of default. To participate, borrowers will have to sign an affidavit of financial hardship and verify their income with documents. "If we would have had such stringent verification over the last four or five years, we probably wouldn't be in as bad a position as we are in," says Richard Moody, the chief economist at Mission Residential. But while Moody has no objection to such verification, obtaining documents from so many homeowners could be an onerous effort. "It's going to be a very time-consuming process," he says. Only loans originated on or before Jan. 1, 2009, are eligible, and modified payments will remain in place for five years. Now that the administration's plan is out, lenders are free to begin modifying loans.
5. Net present value: To determine if a particular mortgage will be modified, the servicer will perform a so-called net present value test. The test compares the expected cash flow that the loan would generate if it is modified with the expected cash flow it would generate if it isn't. If the modified loan is expected to produce more cash flow for the mortgage holder, the servicer is to restructure the loan.
6. Second liensThe Obama plan also addresses the issue of second liens—such as home equity loans or home equity lines of credit—by offering incentives to extinguish them. But key details on this component of the plan remained unclear.
7. Will it work? Moody argues that while the plan may reduce foreclosures for primary residences, it could lead to a spike in defaults for another group of homeowners. Although he supports the administration's efforts to focus the initiative on primary residences, Moody notes that "it could be the case that a lot of [real estate speculators] have been just hanging on waiting to see exactly what the details are of this [plan]," Moody says. Now that it's clear the Obama plan leaves speculators out, "we could actually see a spike in foreclosures or at least mortgage defaults among this group."

Freddie Mac has issued the following Single Family Seller/Servicer Guide Update

2009-04-17T21:12:00.000-07:00

Freddie Mac has issued the following Single Family Seller/Servicer Guide Update regarding Bulletin 2009-9.
Today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2009-9, expands eligibility for the Freddie Mac Relief Refinance MortgageSM, making it easier for qualified borrowers to take advantage of this offering. Relief Refinance Mortgages are a key component of the administration’s Making Home Affordable Program and we are committed to supporting this national mandate by making Relief Refinance Mortgages available to as many qualified borrowers as possible. Today’s expanded eligibility will allow you to help more borrowers refinance into mortgages that position them for a successful and long-term homeownership experience.
With today’s Guide Bulletin, we are incorporating into the Guide the recently announced increase to our maximum loan limits as permitted under the American Recovery and Reinvestment Act of 2009 (ARRA). We are also announcing revisions to our requirements for super conforming mortgages that include the changes we previewed in our April 10 Single-Family Advisory e-mail.
It is important that you review today’s Guide Bulletin for detailed information on these changes.
Expanded Eligibility for Relief Refinance Mortgages
Today’s Guide Bulletin provides detailed information on updates to our requirements for Relief Refinance Mortgages. The following changes are effective immediately and include:
Clarifying that accrued interest through the payoff date may be included when paying off the mortgage being refinanced.
Permitting up to $250 cash back to the borrower.
Enabling the amortization term of the Relief Refinance Mortgage to be longer than the amortization term of the existing mortgage. For example, a 15-year fixed-rate mortgage may be refinanced as a 30-year fixed-rate Relief Refinance Mortgage.
Allowing second home and investment property mortgages that are now owner-occupied primary residences to be refinanced under the Relief Refinance Mortgage offering.
Permitting the transfer of property insurance from the mortgage being refinanced to the Relief Refinance Mortgage, if permitted by the insurance carrier, to alleviate the need for the borrower to prepay property insurance at settlement.
Additionally, when using Home Value Explorer® to determine property value, we are not requiring you to complete the “Year Built” and “Number of Bedrooms” fields on Form 11, Mortgage Submission Schedule and Form 13SF, Mortgage Submission Voucher.
Finally, we are reminding you that Relief Refinance Mortgages may not be sold to Freddie Mac through the selling system’s servicing-released process.
To view the online Bulletin in its entirety, please http://www.freddiemac.com/sell/guide/bulletins/pdf/bll099.pdf

Financially Stressed Taxpayers

2009-04-14T20:51:00.000-07:00

California taxpayers facing income tax troubles are encouraged to contact the California Franchise Tax Board (FTB). An FTB specialist can review accounts and explain available programs that offer assistance. The FTB generally can grant relief from state tax liens within two weeks for financially distressed homeowners trying to sell or refinance their homes. When a home sells for less than the loan balance, FTB sometimes can remove its tax lien from the property to allow the homeowner to complete the sale. Tax liens typically must be paid before a real estate escrow can close. The tax lien remains in effect on any other property the taxpayer currently holds or later acquires.FTB also can help individuals who are refinancing or modifying an existing home loan if homeowners request that the new or modified loan have priority over the tax lien. This allows prior home loans to be refinanced or modified without first having to pay the lien.

Buying Time Against Foreclosure

2009-04-14T16:24:00.000-07:00

Buying “T I M E”Never before has the expression “If I could just buy some time” meant so much to people. When you are facing foreclosure you need time to discover your options, analyze your situation and implement an action plan. Your most precious commodity is time…And it’s running out. When your money is running out… You don’t have time to wait for the trickle down effect of the stimulus package to make a difference in your personal situation. While the package will make a significant difference over the long haul for thousands of Americans, anyone who thinks it is going to quickly make a difference for EVERY American is kidding themselves. Facing reality is hard, but necessary. As a country, we have ignored hard truths with disastrous consequences for too long. Nothing will be gained by continuing to point fingers. However, we must immediately recognize that each of us has a role to play in correcting the serious housing problem we face as a country. (Even if your home is paid off, FREE and CLEAR). The housing market holds the key to stabilizing our country, so anything we can do to keep people in their homes is a step in the right direction.First thing’s first...DO NOT ABANDON YOUR HOME. Even when you are behind on your mortgage, no matter how far behind you are, DO NOT abandon your home until the entire legal process has been played out. You can stay in YOUR house until your right to possession has ended. Exactly when that time is will be determined by three (3) factors:1. Type of foreclosure in your state: judicial or non-judicial2. Whether you have a mortgage or a deed of trust3. State statutes regarding sheriff or trustee sale and possession timeframesFind out the answers to items 1, 2 and 3, and then abide by them. Make sure your lender abides by them as well. Things could improve while you are holding out. Hold on.Things are changing radically and very quickly because of the magnitude of the housing problem. Your local courts could dramatically change the way they process pending foreclosures so that you have a chance to work things out with the lender. Stay in our home and fight for the chance to work things out. More banks are willing to work with borrowers today simply because they really can’t manage the huge backlog of homes which have already been lost to foreclosure. If you can present a viable plan, your chances of retaining home ownership are pretty good.Second thing’s second… I know you know that, but I needed to get your attention. Probably the second most valuable thing anyone will ever tell you to do to save your home from foreclosure is to:1. Demand the lender or servicer who is threatening to sue you for foreclosure produce the original note/deed of trust which says you owe them. In legal terms you are asking them to demonstrate that they are the “real party of interest.” In common language that means, prove I owe you. Prove you have the right to demand payments from me. (This has been discussed on our blog, which can be found at homeownershipmatters.blogspot.com).2. The most effective way to demand this documentation is with a “qualified written request”. You are entitled to request that and any other information you want which is related to servicing on your loan (any mortgage loan in the United States) under federal RESPA regulations.What Choices do I have?Let’s consider the answer to that question. It is critical that you start with an honest inventory of your situation. How far behind are you? Do you have the resources to resume payments? If not now, when will you be able to do so? What do you want to do? What are you ABLE to do? Why should the bank consider your proposal? You’ll need to able to defend it as being reasonable, based on your current circumstances.Space in this article will not allow me to go into detail but I will provide you with the options you can consider. Do further research on each of them, online, in the library, on websites such as HomeOwnershipMatters.com Or at the blog: HomeOwnershipMatters.blogspot.com.a. Options to keep the house—special forbearance, loan modification or a partial claim. You need to learn what each of these means and how it worksb. Options to let the house go—short sale, assumption or deed-in-lieu. All of these options are better than foreclosure but you need to know exactly how they work to avoid creating yet another problem for yourself down the road.c. Reverse mortgage could be considered, it could be your solution. Be sure to use a government backed reverse mortgage if you decide to use this option.d. Receiving disability payments (if you have a claim pending) could make the difference. Hold on until you know what you will be receivinge. Acquiring a roommate could change your finances—get started working on it (I mean a roommate who will PAY—not one who will add to your expenses)f. Selling unnecessary items in order to cover the gap until you get a permanent solution. Ebay or Craigslist could bring in some immediate cash. (Stop crying—we are trying to save your home and Buy “T I M E”).g. Some other solution which has not even occurred to me“Answer” the summonsThe summons is your official notification that the lender has moved to legal action. The court notifies you via the “summons”. Your response should be to the clerk of the courts, the lender/servicer and their attorney. It is critical that your answer be received within the legally stipulated timeframe in your state. It is strongly recommended that the answer be sent by certified mail, with a signature required. This is a task which you can handle on your own, with a little coaching.Basically, an answer should acknowledge that you are aware of your situation and that you are working with the lender on a plan. Specify what that plan entails. If you are challenging whether or not the lender has the legal right to foreclose (due to failure to produce the original note or demonstrate that they are the “real party of interest”) this is your time to say so. The foreclosure is likely to be stalled based on the quality of a timely, well prepared “answer”.Local initiative is neededWe all have high expectations of the new administration but our President has said repeatedly, and has demonstrated with his grassroots campaign, that the masses can make a difference, when they choose to become involved. If every person who reads this article would share it with the people in your personal database, you would help several people to avoid foreclosure.If the leaders of organizations would share the articles and the link to the blog with your entire company, you might save not only their home but the home of some of their family members or friends. Driving people to the blog and website so that they can get practical, easy to understand information to help them with their personal choices could make a big difference. Anyone reading this who has the connections to have a workshop in your city or a program aired on Public Access or Government Access television or local radio show could reach thousands of folks with some concrete/self help which could make all the difference in your community. I am a teacher and a writer. I know the role I am to play. I ask each of you to find your role in helping our country get back on its feet. We must find some resolution to our housing problems. Mildred Wilkins, founder and president of Home Ownership Matters, LLC.

2009-04-13T14:04:00.001-07:00

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C.A.R. launches mortgage protection plan for first-time home buyers

2009-04-13T13:45:00.000-07:00

The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today launched the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), for first-time home buyers.Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit. C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year. To qualify for the Mortgage Protection Program, applicants must:· Be a first-time home buyer – someone who has not owned a home in three or more years· Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009· Use a California REALTOR® in the transaction· Purchase the property in California· Be a W-2 employee (cannot be self-employed) To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®. This week’s Mortgage Update contains information about mortgage rates; mortgage refinancing and how to get the best refinancing deal.Mortgage rates drop to record lowRates on 30-year, fixed-rate mortgages averaged 4.85 percent for the week ending March 26, following an announcement by the Federal Reserve that it is launching a new effort to assist the U.S. housing market. The rate marked a record low in the history of the Freddie Mac survey. The previous low was 4.96 percent set during the week of Jan. 15.Get the best refinancing dealThe recent declines in interest rates on 30-year, fixed-rate mortgages have resulted in many homeowners seeking to refinance. Due to the large number of requests to refinance, some homeowners are experiencing difficulty in trying to reach their lender. According to Fannie Mae’s chief economist, it may take as long as three months for the mortgage industry to start working at full capacity. To ensure they receive the best refinancing deal possible, consumers should be patient and follow a few tips from industry experts: First, consumers should recognize there is opportunity for significant savings by refinancing. Rates currently are hovering around 4.6 percent, but historically hover around 8 percent. Second, homeowners should be aware that Fannie Mae and Freddie Mac have increased their fees, so borrowers could be paying extra fees of 1 percent or more of the total loan amount. To qualify for the best rates, most borrowers must have at least 20 percent equity in their homes and FICO scores of 720 or higher.