Real Estate Information

Here are NEW Government Incentives for

First-Time Home Buyers:

Here is recent changes in the law. We always want keep our clients on the cutting edge. If we can be of service please do not hesitate to e mail or call.

E-mail Tiger@bpbarringer.com

ph# 1-800-894-7282

Local 209-833-7777

FORECLOSURE RELIEF BILL BECOMES LAW
This week, the State Legislature enacted foreclosure reform law to address the adverse effects of high foreclosure rates in California. The new law requires lenders to contact homeowners to explore options for avoiding foreclosure at least 30 days before filing a notice of default. It also requires owners acquiring property through foreclosure to maintain the exterior of vacant residential properties. The new law also extends from 30 to 60 days the time for residential tenants to move out of properties that have been foreclosed upon, unless other laws apply. These requirements will remain in effect until January 1, 2013. The full text of Senate Bill 1137 (Perata) is available at www.leginfo.ca.gov.

Highlights of the new law are as follows:

- Contact Between Lender and Borrower: Effective on or about September 8, 2008, a lender, trustee, or authorized agent may not file a notice of default until 30 days after contacting a borrower to assess the borrower's financial situation and explore options for avoiding foreclosure. A lender must generally contact the borrower in person or by telephone, or satisfy due diligence requirements for contacting a borrower. During the initial contact, the lender must inform the borrower of the right to request a meeting with the lender within 14 days. The lender must also give the borrower the toll-free number for finding a HUD-certified housing counseling agency. A subsequent notice of default must include the lender's declaration that it has contacted the borrower, tried with due diligence to contact the borrower, or the borrower has surrendered the property. A lender who had already filed a notice of default before the enactment of this law must include a similar declaration in the notice of sale. This requirement to contact borrowers applies to loans secured by owner-occupied residences made from 2003 to 2007. Certain exemptions apply if the borrower has filed for bankruptcy, surrendered the property, or contracted with a person or entity whose primary business is advising people, who have decided to leave their homes, on how to extend the foreclosure process and avoid their contractual obligations.

- Maintenance of Vacant Properties: Effective July 8, 2008, anyone who acquires property through foreclosure must maintain the exterior of vacant residential property. Violations of this law include permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action against trespassers or squatters, failing to take action to prevent mosquitoes from breeding in standing water, or other public nuisances. This law authorizes a governmental entity to impose a civil fine up to $1,000 per day for any violation, as long as the owner has been given notice and an opportunity to remedy the violation. A violator must be given at least 14 days to begin, and 30 days to complete, such remediation before a fine can be assessed.

- 60-Day Notice to Terminate Tenants: Effective July 8, 2008, a tenant or subtenant in possession of a rental housing unit that has been sold through foreclosure is generally entitled to a 60-day written notice to quit, not just 30 days. However, a borrower who remains on the property after foreclosure may be served a three-day notice to terminate. This law does not affect, among other things, rent-controlled properties with just-cause evictions. Effective on or about September 8, 2008, the lender, trustee, or authorized agent posting a notice of sale must also post and mail a specified notice of a tenant's right to a 60-day eviction notice from the new owner, unless other laws apply. This requirement to notify tenants of their rights applies to loans secured by residential real property where the borrower has a different billing address than the property address.

Foreclosures dip of 3.4% this month. Read this article its the first GOOD NEWS we have seen for a while. Also with the amount of buyers we are seeing coming into the market place we are hoping the inventory will be starting to go down. This will be the key in starting to see prices start heading up.

http://www.inman.com/news/2008/07/10/foreclosure-related-filings-dip-34-in-june

Mortgage fraud inquiry nets hundreds

Government official says losses in the fraud cases total about $1 billion.

WASHINGTON (CNN) -- Hundreds of people across the country have been arrested by law enforcement officials targeting crooked mortgage brokers, real estate agents, and other industry officials, the head of the FBI and a top Justice Department official said Thursday.

FBI Director Robert Mueller and Deputy Attorney General Mark Filip announced the arrests the same day two former Bear Stearns hedge fund managers, Ralph Cioffi and Matthew Tannin, surrendered to the FBI. The men are expected to face federal charges that they intentionally misled investors in two funds that collapsed last summer under the weight of wrong-way bets on mortgage-backed securities.

More than 400 people have been charged in the mortgage fraud probe, of whom nearly 300 have been arrested, including 60 in a coordinated sweep Wednesday, the Justice Department said.

The losses in the mortgage fraud cases cost consumers more than $1 billion, Mueller said.

"We will, as appropriate, seek prison terms," Filip said. "It is a very, very serious matter."

"Operation Malicious Mortgage," the investigation by the FBI and Justice Department, began March 1, government officials said. It resulted in 144 fraud cases in which 406 defendants were charged.

The FBI is investigating about 1,400 more cases of potential fraud, Mueller said, calling it "a substantial number of investigations, unfortunately."

The agency has 42 mortgage fraud task forces in operation, employing 180 agents, Mueller said.

Many agencies were credited as contributing to the investigation, including the Internal Revenue Service, the Secret Service, the Department of Housing and Urban Development, immigration and customs agencies, postal inspectors and the Federal Deposit Insurance Corporation.

Most of the arrests came Wednesday, federal law enforcement officials said, in Miami, Houston, San Antonio, Baltimore, Chicago, and other cities.

Officials indicated the suspects were involved mostly in small-scale schemes.

CNN Justice Department producers Terry Freiden and Kevin Bohn contributed to this report. TOPTOP

First Published: June 19, 2008: 9:35 AM EDT

Housing rescue group steps up efforts

Here is an article from the Modesto Bee that BUYERS cannot ignore that the time to BUY is NOW.

http://www.modbee.com/reports/realestate/story/333437.html

This property is being sold in its present condition “AS IS” condition.  Seller will choose title and open escrow.

A pre-qualification letter is NOT the same as a pre-approval letter.  A pre-approval letter is required stating credit and income has been verified, approved amount, loan type, LTV/CLTV, etc.  In certain circumstances, the bank may require the buyer to be pre-approved through their preferred lender.  The buyer does not have to use this lender, but must get pre-approved to show ability to purchase the home.

Please be aware some of the foreclosure properties have condition issues that leave it unable to qualify for FHA/VA loans.  The seller WILL NOT pay for any lender required repairs to qualify the home for buyer financing.  Please only write offers on these properties if your buyer is willing to pay for the required repairs out of pocket, and is aware they will NOT be reimbursed if they don’t close escrow.

If you have questions about availability of a property or want to know if there are offers on the property, e-mail the Barringer Team for the most up to date status available.  Please be advised that due to the amount of offers coming in, there are always offers that have not yet been processed.  Not all banks will counter in a multiple offer situation, so advise your client to put their best foot forward as they may not have a second chance at the property.

Please note there is a non-negotiable per diem fee that will be charged to the buyer if the buyer is unable to close escrow by the date stated on their contract.  Make sure to write your contract with a close date your buyer’s lender can meet.

The offer must include the contract, copy of deposit check, and pre-approval letter for financed offers and/or proof of funds for cash or large down payment offers.  The offer cannot be submitted for bank approval without all of these items. 

You will receive confirmation within 24 hours that your offer has been received on weekdays.  For offers received on Saturday and Sunday, you will receive a confirmation of receipt by the end of Monday.

BANKS CAN BE VERY SLOW:  Once the bank responds to your offer, we will notify you.  It can take up to 2 weeks depending on the back and/or the banks work load.  You will be notified immediately upon receiving the bank’s response. 

Buyer investigation rights do not start until we have received contract.  Any and all inspections/reports are for informational purposes only.  Seller will not adjust price, complete repairs, nor give concessions as a result of any inspections.

Once we receive the buyer signed documents and send the purchase package for seller signatures, please be advised it can take up to 14 business days to receive the seller signed documents back as well as escrow information.  It depends on the bank and the bank’s work load.  We are excellent at forwarding them on immediately upon receipt.  As soon as we have them, you have them.

If you have any questions you do not feel this covered, please e-mail them to the Barringer Team.  We understand this is not your typical transaction, and do our best to make it a successful one.