Mike’s Real Estate Show

FHFA Program
What is the Federal Government Loan Modification Program? The Federal Government Loan Modification Program is designed to reduce preventable foreclosures with a simplified, streamlined loan modification program to put struggling homeowners into mortgages they can afford.  Read the rest of this entry »

Bank of America Announces Nationwide Homeownership Retention
Program for Countrywide Customers

Nearly 400,000 Countrywide Borrowers Could Benefit After Program Launches December 1

CALABASAS, CA - Bank of America today announced the creation of a proactive home retention program that will systematically modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for nearly 400,000 Countrywide Financial Corporation customers nationwide.

The program was developed together with state Attorneys General and is designed to achieve affordable and sustainable mortgage payments for borrowers who financed their homes with subprime loans or pay option adjustable rate mortgages serviced by Countrywide and originated prior to December 31, 2007. Bank of America acquired Countrywide July 1, 2008.

“We are confident that together with the Attorneys General we have developed a comprehensive program that provides more solutions than ever before to assist troubled borrowers and put them back on the path to sustained home ownership,” said Barbara Desoer, president, Bank of America Mortgage, Home Equity and Insurance Services. “Since acquiring Countrywide in July, we have committed significant resources and developed innovative programs to help as many Countrywide customers as possible stay in their homes.” Read the rest of this entry »

The fear of having the Niners on National TV comes through…Last week I mentioned I wish the Niner-Cardinal game was buried on a Sunday Afternoon instead of the whole country to see.  Read the rest of this entry »

A special Player of the Week performance…SCL and NBL races normal outcomes….SRJC a record game themselves… Read the rest of this entry »

Prospect Mortgage , a “Direct Lender”                                      
   We now know what the new conforming loan limit will be for Sonoma county for 2009 . . . .its $520,950, up from $419,000. We are now a “highcost” county.  That will mean for loans that close in 2009 you will get the best possible rate to $520,950 on a single family , owner occupied home  . . . some good news.  FHA also will be  the same $520,950 figure for the “best” rate.  Look for more FHA loans to be done in 2009 as long as rates are ok Read the rest of this entry »

The following is from Lou Barne’s weekly column which he writes for his web site under “credit news” and is featured on Inman.com. Lou notes that the bail-out should be increasing LENDING! Plus he gives you, the consumer some sage advice! 

The central banks and treasuries are going to need some help. From the banks: loans! France this week threatened to fire senior managers unless they began to lend and at rates reflecting lower cost of money. The UK is hard at the same thing, banks to make loans an explicit quid pro quo of government capital injection. Bankers here better get with it, or Mr. Obama will turn loose Barney Frank. A fate worse than firing.
     More help. Investors must resume risk-taking; and there’s nothing for that like the liquid courage of near-zero cost-of-cash.
     And help from you. Do not accept passively the cancellation of a line of credit or a cap on a credit card. Inform someone senior in the miscreant bank that their contemptible and unpatriotic behavior will cost them reputation. Then march straight to a nearby small bank or credit union that will be delighted to hear from you.
     Then educate yourself. Every financial crackpot in the nation is loose, scaring and confusing everybody from your neighbors to policy makers. Secrets of the Temple is a superb, readable history of the Volcker era, and of the Fed itself. The first half of imposing but enthralling Freedom From Fear is the best current account of the onset of the Depression, and the desperate and futile effort to find the fixes that are understood and available today. For the technically adept, nothing beats Bernanke’s own essays in The Great Depression. All in paperback — and to see the breadth of opinion among escapees from the economic funny farm, scan the reviews of these books at Amazon.

Here is a link to Lou’s web site:  http://www.boulderwest.com/news/index.html

New Loan Limits for Sonoma County!

 The Office of Federal Housing Enterprise Oversight which is now housing Fannie Mae and Freddie Mac, has come out with their new loan limits for 2009.

We have the old $417k for the majority of California despite a drop of some 50% in value over the past 4 years! But the big news is the new “High Cost” limit which is determined by our Metropolitan Statistical Area or MSA. Here are some ”new” limits for NEXT YEAR!!  

CA Santa Rosa-Petaluma (Metropolitan Area) Component County: Sonoma

$520,950  1- unit   $666,900 2 units  $806,150 3 Units  $1,001,850  4 Units

Here is a link to take you to the press release showing all areas:
http://www.ofheo.gov/media/cll/HighCostLoanLimits2009.pdf
Napa County - $592,250
Sacramento (Incl El Dorado/Placer/Sac/Yolo) - $474,950
Salinas (Monterey) - $483,000
S.F./Oak/Fremont (Incl. Contra Costa/Alameda/Marin/SF/San Mateo) - $625,500
Santa Clara (Incl. San Benito/Santa Clara) - $625,500

  My guest this week will be Realtor Allison Norman of Keller Williams Real Estate here in Sonoma County. Allison, who specializes in working with Investors and First Time Homebuyers, is committed to her community and serves on a neighborhood advisory panel for the NW area of Santa Rosa while busily serving her real estate clients. She is a “Buyer’s Agent” who makes sure you receive the representation all buyers deserve.

  We will be discussing working with a “Buyer/Broker agreement” and how this protects a buyer. You would never sell your home without a written listing agreement so why buy a house without a written agreement between both parties–The buyer AND the Realtor!

  Allison will also bring us up to date on the marketplace and what great buys are out there for your buying pleasure!

The only issue with first timer homebuyers purchasing REO’s (Real Estate Owned) or bank owned foreclosed properties is the CONDITION of the property! I can’t tell you how many times we’ve had offers presented on properties which just won’t pass muster with an FHA appraiser! I have a REO listing now which has mold, obvious dry-rot in numerous places and a master bedroom shower with damage which will be screaming red flags for a FHA appraiser. They will NOT approve the property for an FHA loan! The appraiser will want the damage either removed or call for further inspection. Most Assett Managers, based on their agents reccomendations, will NOT allow a property to be tied up with an FHA inspection process.
So though you CAN use both CalFHA and/or FHA and even VA, just beware you need a pretty clean property to achieve this. Recently the Countrywide REO’s are going to be allowed “hold-back” for repairs. But some of these properties are beyond that! Just be a smart, savvy buyer and don’t try to make a silk purse out of an REO pig’s ear!