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
Thursday, May 28, 2009
UPDATE: FHA Decision Could Benefit Home Buyers, Builders
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.)
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
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
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
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
http://video.aol.com/video-detail/un-saleable-homes/253292954
CNN Money discusses Unemployment Major Factor missed mortgage payment
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.
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
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.
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
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
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
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