Ocwen Must Reimburse Owners

If you have/had a loan from Ocwen, then you may be in line for some Christmas-time cash from the mortgage servicer. In an consent agreement with the Consumer Finance Protection Bureau (CFPB) and 49 state attorneys general filed in Federal court, Ocwen has agreed to pay $2 Billion in loan principal reductions to borrowers whose homes are worth less than the amounts of the loans (underwater borrowers) and refund a further $125 million to 185,000 borrowers who were already foreclosed upon. The consent agreement covers claims by the CFPB that Ocwen at every stage of the loan servicing process the firm violated various areas of the law, including such things as misapplication of payments by borrowers, unauthorized fee assessments, and robo-signing of documents, to name a few of the violations. In a related regulatory filing, Ocwen claims it has already set aside a reserve to cover all of the settlement except $500,000. So, if you have had any connection to Ocwen regarding your mortgage loan and/or have been foreclosed on a loan they were servicing, you should call them regarding how much and/or if, you are covered in this agreement. If they can't, or won't provide satisfactory answers, call the CFPB directly and ask them. Their phone number is (855) 411-2372. Their web site is: www.consumerfinance.gov . Good Luck and Happy Holidays.

Possible Relief in New Jersey!

In an agreement between the state of New Jersey and PHH Mortgage company, PHH has agreed to pay the sum of $6.25 Million to cover allegedly misleading activities in processing/granting of loan modifications and other processes to help homeowners avoid foreclosure. Of this total, "the settlement includes $3.61 million in restitution for approximately 2,000 borrowers nationwide whose loans are serviced by PHH. For example, 44 borrowers whose homes were sold in sheriff’s sales while loan modifications were pending will receive $10,000 each." These payments will be made within thirty days of the effective date of the settlement. The balance of the settlement will be paid to the state of NJ. Additionally, PHH will have to make regular reports on all loan mod applications and foreclosures to the NJ Attorney General for the next two years. If you have, or had, a loan with PHH, or your loan was serviced by PHH, you can call them or the NJ Attorney General for more information as to how this settlement affects you. As always, Good Luck!

New Suits Against Banks in LA

In the past few days, the city of Los Angeles has filed suit against three major mortgage lenders: Wells Fargo, BofA and Citibank, alleging that their mortgage procedures had been at least partly to blame for over 200,000 foreclosures between 2008 and 2012 on mortgages made since 2004, costing the city over $1.2 Billion. The suit charges these lenders with various types of discrimination in making mortgages, including redlining. All three defendant banks denied any of the violations charged. If you borrowed a mortgage from any of these banks at any time since 2004, and have lost your home, or been threatened with the loss of your home, contact your attorney, or, if you cannot afford one, contact legal aid. Clearly, the charges have to be proven in court before any damages can be assessed, and that may take several years, as well as the fact that the existing suits are filed by the city of LA, but, if you feel you have valid claims under these alleged infringements, your attorney may feel it proper to join the suit in your behalf to cover any damages you may have incurred. As always, Good Luck.

Foreclosed by MERS? VERY IMPORTANT NEWS!!

If you are facing foreclosure, or have been foreclosed in the past 4 years via the lender(s) using MERS as the trustee to file and produce documents, you may have just gained a major weapon in your fight to void the foreclosure action. A Federal District judge, John J. McConnell, ruling in the case of Cosajay v. MERS, this week ruled that borrowers facing foreclosure DO have legal standing to bring a suit against the lender and all transferees or successors to the mortgage. This is VERY important as previously only a local case in Massachusetts had gained this type of decision in a local Massachusetts court. The fact that this case, tried in Federal court in Rhode Island only covers RI cases, doesn't preclude you and your attorney from citing it to try to get a court elsewhere in the USA to state the same rule. It is NOT legally binding precedent as it is NOT from an appellate court, but its very existence can make it a powerful tool to win a case when a doubtful or fraudulent transfer/foreclosure through or to MERS is involved. Previously, all such cases from homeowners were usually summarily dismissed with the claim that the homeowner had no standing to sue as he/she hadn't been involved in the transfer from their lender to/through MERS. This ruling goes a long way to putting that theory in the trashcan where it belongs! If you have any questions, call your attorney and tell him/her of this case. If you cannot afford an attorney, call Legal Aid. As always, Good Luck.

CFPB Seeks Complaints

The Consumer Finance Protection Bureau, CFPB for short, has had as its main purpose since it was created a couple of years ago, the protection of consumers from any egregious procedures or unfair activity by lenders. Over the time of its existence, this has included fielding complaints from consumers who feel wrongfully treated by their lenders. Now they are planning on increasing this activity. The newest complaint procedure has not yet been rolled out, but in the meantime, if you feel wrongfully dealt with on your financing, or that your rights were violated, you can still send your grievance to them for investigation. One place to go is: www.consumerfinance.gov , which is their web site. That site will then guide you through the complaint process. As always, good luck.

Affected by Government Shutdown?

If you're directly affected by the ridiculous government shutdown that Congress has foisted upon the country and are facing possible default on your mortgage, there's good news for you from the FHA. The FHA, following similar actions by the VA and both Freddie Mac and Fannie Mae, has asked all of its lending partners to "take all reasonable steps" to help borrowers avoid defaults due being 'furloughed' (isn't that a great word instead of laid off or fired) or having work time cut as part of their being federal government employees affected by the current government shutdown. They have also asked that late fees and other penalties for non-payment or late payments be waived for the duration of the shutdown. Any questions: get in touch with FHA. Their web site is: www.HUD.gov. As always, good luck.

Helpful Refi Info

In order to help educate homeowners about possible HARP refinance options, the Federal Housing Finance Agency (FHFA) has announced a new program that is designed to get owner eligible under HARP better informed about their refinance options. In order to be eligible under HARP, the owner's loan "must be owned by Fannie Mae or Freddie Mac, the mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009, the current loan-to-value ratio must be greater than 80 percent, and the borrower must be current on their mortgage payments with no late payments in the last six months and no more than one late payment in the last 12 months." While to date over 2.8 million homeowners have successfully refi'd under HARP, FHFA says there are still a fair number of owners who are unaware of their options, or who, for a variety of other reasons, have not yet availed themselves of the program. This new program is designed to help such owners take advantage of the program. So, if you and your current loan fit the above parameters, call FHFA for more information and you may be able to save yourself a good deal of money, as well as your home! As always, Good Luck.

Eminent Domain Suit Dismissed

As previously noted here, the city of Richmond, CA has decided to use eminent domain as a way to force lenders to, in effect, renegotiate mortgages already existing. If the lenders refused, the city would use the power of eminent domain to seize the loans and reset them at lower rates so the owners could remain in their homes. A number of lenders filed suit to block the plan by injunction. However, in the past few days a judge has dismissed the suit. HOWEVER< contrary to what supporters of the plan claim, the judge didn't dismiss on the merits of the suit. Rather, he dismissed because he felt that the events cited in the suit by the lenders had yet to come to pass, and thus, as future events that might or might not ever occur, were not presently actionable. However, I can guarantee you haven't heard the last of this issue.

Eminent Domain for Mortgages: Part 2

You may recall that a few weeks ago I reported that the city of Richmond, CA is considering using eminent domain to cure problems where homes are 'under water' in regards to their mortgages. Yesterday, the city council voted, 4-3, to proceed with the program. The idea is that if a lender wouldn't negotiate a modification to the loan on a particular property, the city would the use eminent domain to take over the mortgage and negotiate a lower rate and payments for it with another lender. Understandably, this has the lenders up in arms, and both Wells Fargo and Deutsche Bank have filed suit seeking a preliminary injunction to stop it. Meanwhile, even the city's vote is of questionable effect in terms of beginning the plan's operation. This is because in situations where city funds are involved, a majority of at least 5 votes is required, so the Council's vote yesterday is short. Opponents in Richmond are leery of the plan for fear of expensive lawsuits against the city from the lenders affected. Stay tuned--this may prove to be very interesting.

Settlement & Cash from Everbank

If you're mortgage is/was with Everbank, and you were in some stage of the foreclosure process in 2009 or 2010 (and there are approximately 32,000 of you), there may be some cash coming your way. As part of a settlement with the Office of the Controller of the Currency (OCC), similar to those reached with many of the nation's largest lenders, checks will be mailed to borrowers who had mortgages with Everbank and were in difficulty in the aforementioned years. Checks will range from a low of about $1050 to a high of $125,000, and will be mailed out "in the near future". No specific date was cited. Those eligible will be contacted directly. In addition to these payments, Everbank must evaluate borrowers in the foreclosure process for the possibility of doing loan modifications for them. As part of the program, the bank must also establish a complaint process to receive and resolve complaints from borrowers who feel wronged as part of their situation. If you have any questions, you can contact Everbank directly or the Office of the Controller: www.occ.treas.gov or by phone: (800) 613-6743. As always, Good Luck.

Mortgage Rescue Fraud Still Out There-BE CAREFUL!!

Well, even though, according to the Financial Crimes Enforcement Network, there were fewer reports filed in 2012 (latest available numbers) of mortgage fraud. But, what is more important to you if you're in difficulties with your loan, the number of mortgage rescue frauds is still on the rise. In the same period, fraudulent rescue scams rose to 4,427, up 58 percent from 2,799 in 2011. What does this mean for you if you're having trouble keeping your mortgage head above water? Simple! There are still vermin out there more than happy to take your money and/or home from you under the guise of helping you out of your trouble. The rules to avoid these scum are still quite simple. If a deal or offer for assistance sounds too good to be true, it probably is. Use common sense. Also, if someone approaches you with a 'guaranteed' plan to save your home from foreclosure, as for all information. Also, be prepared to run as fast as possible in the other direction when your 'mortgage savior' asks for an upfront fee for his services. That's a guaranteed clue that the only person he's interested in helping is himself--to your money or home, which, in the latter case, he'll try to add a mortgage to, or sell, and pocket the money in either case. If you suspect someone of attempting a mortgage rescue fraud, you can also do everyone else a favor by 'dropping a dime' on him. Call your local consumer fraud division of the local district attorney or your local law enforcement agency. Good Luck!

Making It Easier After A Foreclosure

In a letter just issued, the FHA has determined it will loosen the limits on borrowers who have previously had a bankruptcy, foreclosure, deed-in-lieu, or short sale. The rules will allow formerly foreclosed borrowers to get back into the market in as little as twelve months from the foreclosure. The twelve month period must evidence consistent good credit throughout this period. That can be by paying a mortgage on time, or such other obligations as rental payments. This is subject to a few qualifications. The borrowers must provide documentation that the cause of their prior credit problems was either a loss of income beyond their control or loss of employment. They must also show that the issue has since been fully remedied, and take housing counseling courses.These new lenient guidance rules cover all new FHA cases from August 15, 2013 through September 30, 2016. Questions? Contact the FHA. The web site is: www.hud.gov , and the toll free number is: (800) 225-5342. As always, Good Luck.

Court Sides With Borrowers On Loan Mods

In a decision last Thursday, the Federal 9th Circuit Court of Appeals took the side of borrowers denied a permanent loan mod by their bank. The court said that even if the rejection by the bank was after a trial mod had been completed, the borrowers have the right to sue the bank for denying the permanent mod. It DOES NOT say the bank must agree to the permanent mod, just that the denied homeowner may then sue if it feels it has been wronged by the denial of the permanent mod. However, the court reversed the trial court on the issue, and giving an idea of how it felt about the merits of the case, noted that once the borrower had provided all required documents and paid all of its fees, the bank was contractually obligated to provide the permanent mod. The ruling came in two similar cases combined for appellate purposes: Corvello v. Wells Fargo Bank, NA and Lucia v. Wells Fargo Bank, NA. So, if you're having problems with your lender over a permanent mod, and the lender has previously provided a temporary mod and collected fees from you for it, you may want to have a conversation with your attorney and consider litigating the issue.

Mortgage Scammers Get A new "Home"

As of yesterday, four mortgage relief scam artists are finding out that if caught, they'll be getting free rent in a cozy room with bars on the windows for six to eight months each. The men, all from California, Jacob John Cunningham, 26; John D. Silva, 28; Justin Dennis Koelle, 23; and Dominic Adam Nolan, 32; all pleaded guilty to felony counts of conspiracy to collect illegal upfront fees and conspiracy to commit theft by false pretenses. Cunningham, Silva, and Koelle all pleaded guilty to two felonies, while Nolan pleaded guilty to one. In addition to the jail time, they also were handed five years probation, and a ban on working on loan mods or consulting about mortgages. Additionally, they must make restitution, the amounts to be determined in future hearings. They had fraudulently taken more than $130,000 from hundreds of homeowners, promising that they would be able to obtain loan mods. They claimed a 95% success rate. After receiving the fees from the victims, they neither obtained the mods or returned the fees. Once this scam had more or less run its course, they began to offer refinancing deals. These cost the borrowers 2.8%, and once the fees were paid to the scammers, they would provide Letters of Conditional Approval on servicers' letterhead. The investigations were handled by the Inspector General's Office of TARP, assisted by the Secret Service and various local law enforcement agencies. If you were scammed by any or all of these four, you probably should get in contact with the Inspector General at TARP.

Good News From GMAC

If you had your mortgage with GMAC, and were in some stage of foreclosure action by GMAC that you thought was incorrect, until now you had to stand on the sidelines and drool enviously as borrowers in similar situations to you with other major lenders got compensated by the huge deal under the Federal and OCC with those lenders. However, now the same deal has been reached with GMAC. As part of the settlement, GMAC has agreed to pay a total of $230 million to homeowners in this situation who were incorrectly placed there by GMAC. That sum will divided up among 232,000 GMAC borrowers who were any stage of foreclosure in 2009 or 2010. If you have any questions, call Rust Consulting at 1-888-952-9105. These questions can include how much you may be entitled to and details on the timing of the payment. As always, Good Luck.

Help From Fifth Third Bank

Fifth Third Bank has established a way to help those who are now out of work from falling victim to foreclosure. As I mention in my book, Save Your House From Foreclosure!, loss of a job is one of the four major causes of foreclosure. However, 5th Third has set up a possible way to avoid this fate when you lose your job. Working with it partner, NextJob, the bank helps its mortgage borrowers locate a new job. This gets the borrower back to work and re-establishes his/her ability to pay the mortgage, thus avoiding foreclosure. For details, contact your local Fifth Third branch, or log on to NextJob's web site, www.next-job.com . As always, good luck.

Expedited Foreclosure Bill Passes in Florida

At first blush, any law that talks about 'expedited foreclosure' would seem to be something that works against homeowners. However, in this case, the law, passed with bipartisan support in both houses of the Florida legislature, has a number of items that, in fact, work to the benefit of the homeowner who is facing foreclosure and unable to avoid it by any means at all. It only applies in the cases of when homeowners are not contesting the foreclosure, and, along with the lender, is seeking a speedy resolution to the specific foreclosure on their home. However, to the benefit of the homeowner, there are two very important details that are part of the law, and definitely benefit the homeowner. First, if there is a potential deficiency judgment that may be filed against the homeowner, it must be done in one year from date of foreclosure. Previously,a lender had up to five years to file such an action. For those of you unfamiliar with such an action, a deficiency judgment occurs in cases when the lender forecloses and, after sale of the home by them, nets less that they are owed. For example, you owe $300,000 and lose your home to foreclosure. When the bank sells it, they net only $175,000. The difference, $125,000 in this case, is the deficiency and the bank may legally sue you for that amount. So you've not only lost your home, you now face also owing them the difference that they couldn't get out of the home when they sold it. Not all states allow deficiencies, but many do. This law forces the bank to act more quickly or, if they fail to do so, terminates their right to come after you for a deficiency if they try after a year has passed from the foreclosure. The other benefit in the new law for homeowners is that a lender must prove it has the underlying promissory note from the loan before filing a foreclosure action. That note is the legal evidence of a debt that gives the lender the right to foreclose when you default on the mortgage. Often in the past, banks would say they had the right (and the note) to foreclose when in actual fact, they either couldn't find the note (for any number of reasons) or had lost it. No proof of note, no right to foreclose. With this law, the lender must show it actually physically possesses the note, or they cannot prevail in a foreclosure action. So, the word here is, if you're facing an unavoidable foreclosure, can't get a loan mod or do a short sale, check with your attorney about the protections this new law may provide you. If you can't afford a lawyer, call Legal Aid. That's what they're there for. Good Luck.

Smoother Short Sales

Short sales--not the most desirable path for most homeowners. However, there are, unfortunately, times when taking as foul tasting medicine is the best course. Short sales can be this medicine; sometimes short sales are at least a way of minimizing the personal damage to an owner's psyche and credit record. However, one of the biggest problems in trying to get a short sale completed is the hurdles that a lender always seems to place in front of the Seller. It's always, "You don't have all of the correct documents", or "this document is not filled out properly", or "we (the lender) don't agree with the valuation of your hoe", and on and on and on, ad nauseam. Well, at least in the case of Fannie Mae short sales, someone is attempting to do something to lessen the aggravation. Fannie has just announced a plan to streamline short sales that it is involved with. First announced this past February, it has been used successfully many thousands of short sales. When there is an accepted short sale offer, Fannie has the Realtors register the sale with them on www.Homepathforshortsales.com . Once registered, with the agent putting all relevant information, such as property address, MLS listing information, offer details, and subordinate lien information on this site. In addition, other supporting documents and information will be required such as scanned copies of the sales contract, estimated net sheet or HUD-1 settlement statement, and borrower authorization form. The site even has capability to smooth things out if issues such as problems with subordinate lien holders, sales amount or other items arise. In such instances, the agent asks the folks at Fannie to escalate the sale transaction process. On receipt of the escalation request, Fannie will contact the agent directly to closely review the hindering issue and try to commence a solution to it. This escalation process has already been successfully applied in over 10,000 short sales. So, if you have a loan with, or guaranteed by, Fannie, are having problems that cannot be remedied any other way and are actively considering a short sale, you might want to have your agent contact Fannie to take advantage of this process. As always, Good Luck.

ATTN: New York HSBC Borrowers!

If you have a home mortgage in NY state, and the lender is HSBC, listen up!! Apparently, under New York state law, before a lender can foreclose, they must file for what is called a Request for Judicial Intervention (RJI) within 60 days of commencing the foreclosure process. This is to possibly help homeowners avoid foreclosure. What the RJI does is to hold a judicial settlement conference between lender and borrower to allow the borrower to propose alternate methods to foreclosure on their homes. These could include loan mods or short sales, as well as other alternatives to the foreclosure to assist the homeowner retain the house. The NY state Attorney General has filed suit against HSBC alleging that the bank has failed to file the RJI's in a prompt manner (within the legal time limit), thus hindering homeowners from saving their homes from foreclosure. “Companies like HSBC are brazenly ignoring state law, leaving homeowners across New York stuck in a legal limbo where they can’t even get the legally required settlement conference that could help them keep their homes,” said Attorney General Schneiderman. “For homeowners facing foreclosure, time is their greatest enemy. Every day spent waiting for a settlement conference is a day that the lender piles on additional interest, fees and penalties and the homeowner falls further behind.” According to the AG's office, over 300 cases have been identified where this has happened. These 300 cases were located in just four of New York's counties: Erie, Monroe, Suffolk and Bronx. However, if the bank has failed to do so in four counties, one must wonder if it has also done so in other parts of the state. So, the word here is: if your loan is with HSBC and you're having trouble with it, possibly facing foreclosure, you may want to contact the NY Atty. General's office and ask for some intervention on its part. As always, Good Luck.

Bank Settlement Paying Agent

For some reason the electronics powering this blog cut me off before I could supply the contact info for the bank settlement paying agent. So, without further delay, here it is: Rust Consulting; (888) 952-9105. As always, I wish you Good Luck.

Bank Settlements Nearing Completion

It was just announced that the five banks in the major foreclosure settlement put together last year have nearly completed their agreed upon obligations to pay out money to aggrieved homeowners and former homeowners who were foreclosed upon wrongly. A total of $50.6 Billion has been provided to homeowners and former homeowners by the five banks in last year's settlement: BofA; Chase; Wells Fargo; Citigroup and Ally Financial (former GMAC). This sum has been paid out to more than 621,700 borrowers. In fact, BofA claims it 'may' have actually exceeded its obligations under the agreement and plans to continue its outreach program to homeowners needing this assistance. The above figure is the sum of not only the aforementioned settlement, but also all other types of relief provided to borrowers by the five institutions. BofA has provided $29.2 Bn in relief to 320,000 homeowners; JP Morgan Chase claims that 126,000 customers have received $11 Bn in relief; Wells claims that 93,000 customers have received aid totaling 90% of its obligations. Ally's settlement entity, ResCap, is credited by the Comptroller of the Currency with achieving 100% of its agreed upon goal. As noted previously, if you think you are entitled to relief from the settlement or any related programs, contact the Comptroller or call the paying agent:

Fannie, Freddie Making Mods Easier

In a new move, both GSE's Fannie Mae and Freddie Mac, are moving to start a new program making loan mods easier in many cases. Already announced, the Streamlined Modification Program will provide those who qualify an easier time of it in obtaining a loan mod of their Fannie or Freddie backed loans. Originally scheduled for a July 1 start, both GSE's are now using the plan. Basically, it makes a borrower eligible if they are at least 90 days delinquent, but not more than 720 days (almost two years) past due. The loan itself has eligibility requirements as well. It must be a first lien loan that is already at least a year old, and have a loan to value ration of at least 80%. If a borrower and loan fall within these parameters, then that borrower may qualify for the mod without having to submit documentation on his/her finances or hardship situation. If he/she receives one of these streamlined mods, it initially will be made as a trial modification for an initial period of three months. As long as the borrower makes all payments on time during that initial three months, the mod will then become permanent. So, if your loan is tied to either Fannie or Freddie and you think you fit into the qualification parameters mentioned above, get in touch with the folks at Fannie or Freddie right away! The money you save could also save your home! Good Luck.

Update On Florida Foreclosure Law

Regular followers of this blog may recall the announcement that a bill was wending its way through the Florida legislature to force lenders to prove they have the appropriate loan documents allowing them to foreclose before they commence the process of foreclosing on someone's home. Well, the bill has cleared both houses of the legislature and is now on the desk of Gov. Rick Scott for signature. No info is available on whether the governor plans to sign or not, but it did pass with healthy bipartisan margins in both houses: 26-13 in the Senate and 87-26 in the House, so it is reasonable to expect enactment.

New York to Sue BofA, Wells

In a statement just released yesterday, the NY state attorney general, Eric Schneiderman, has announced plans to sue both BofA and Wells Fargo for alleged violations related to the pace of loan modifications agreed to under the February 2012 foreclosure settlement with leading lenders. The AG cited 339 service violations related to the timeline for processing loan mods. Schneiderman's office cited four areas of violation: "four servicing standards mandated under the settlement that the banks allegedly violated, one of which requires the servicer to make a loan modification decision within 30 days of receiving a complete mod application. Another requirement allows the borrower 30 days to submit missing documents or correct issues found in the loan modification application. Borrowers must also receive written acknowledgement regarding receipt of a loan modification application within three business days, and servicers must notify borrowers of all missing documents in the submitted mod application within five business days of receipt." BofA issued a response that they take these accusations seriously and will work to resolve them, while Wells had no comment at present. So, if you're in NY State and have mortgage or loan mod issues with BofA or Wells, you may want to chat with AG Schneiderman's office. Good Luck.

More Checks Are in the Mail!

Once again, a set of checks from the foreclosure settlement have been mailed out. The latest batch, 233,404 in all, hit the post office last Friday, May 3, and total $224 Million, bringing the total value of all checks sent out to date to $3.4 Billion. Individual checks in this new mailing range from $300 on the low end to $125,000 on the high end. As previously, if there are any questions on the checks from those who are to receive them, they should be directed to Rust Consulting at: 1-888-952-9105. Once again, Good Luck.

More Foreclosure Review Deal Checks to Be Mailed

The checks for Morgan Stanley or Goldman Sachs borrowers under the settlement will soon be in the mail, according to the Federal Reserve. Announcing this, the Fed said that 220,000 borrowers with a loan in any stage of foreclosure in 2009 or 2010 serviced by the following subsidiaries of these firms, Litton Loan Servicing LP or Saxon Mortgage, will have their checks mailed on May 3. In case you don't have a calendar handy, that's this Friday! Total value of these checks will be $247 Million. As in all previous settlement check mailings, any questions on a particular check should be directed to the Paying Agent, Rust Consulting, at (888) 952-9105. Also, a word to the wise. As with everything involving money, the scam artists will also be crawling out from beneath their nearest rock to try to scam you out of your check. BEWARE if anyone tells you to call a different number, or suggests they can help you with your check for a fee paid up front. There is only one number, shown above, and no fees are required to get your check if you are, in fact, entitled to one. If someone shows up telling you otherwise, tell them to take a hike. As always, Good Luck.

More Foreclosure Settlement Checks Mailed

The latest update on foreclosure settlement checks is as follows. The third batch has been mailed out, as of the end of last week.Valued at $794 million, the Office of the Comptroller of the Currency (OCC) said these went out Friday. This sum was the total of 927,000 thousand checks at this latest mailing. To date, according to the OCC, a total of 3.7 million checks worth a total value of $3.2 Billion have been mailed. As with previous mailings, there may be some individual questions from homeowners or former owners. In such cases, the OCC advises borrowers to direct their questions to Rust Consulting, the paying agent, at 1-888-952-9105. Maybe the check really IS in the mail! Good luck.

Republicans Try to Void CFPB (and help their banker friends)

Well, politics has once again reared its ugly head! The sitting chair, by recess appointment, of the Consumer Finance Protection Bureau (CFPB), Richard Cordray, gave a report on his agency and consumer finance to the Sdenate Finance Committee, and was scheduled to do likewise to the House Committee in the same are. However, the committee chair, Rep. Jeb Hensarling (Republican of Texas) refused to allow the testimony. Why? Because the legislator claims that Cordray's appointment is unconstitutional and thus, Cordray isn't a valid head of the CFPB. Thus, according to Hensarling's twisted logic, Cordray cannot legally testify before the committee. This is the latest way the pro-bank Republican members of Congress are trying to render useless the legally created CFPB. Why? Simple. No CFPB, no independent consumer oriented oversight of the finance industry. Write your Congressman and Senator and make it clear: continued shenanigans such as this and there'll be a new member of Congress/Senator after the next election. Then work to make it happen!

More Settlement Checks Mailed

Well, if you've been following this site, you know that the first batch of foreclosure settlement checks was mailed out a while ago, with some of them bouncing on a technicality. You also know that the balance are to be mailed "soon". Well, for at least some of the checks, if not quite all, the second batch has now been mailed. This news comes from the Office of the Controller of the Currency, the Federal agency that oversees the operation of all federally chartered banks in the US. This latest group of checks totals 1.4 million checks, totaling $1.2 Billion in settlements. When added to the previous batch of checks, the total number sent out to homeowners is 2.8 million checks totaling $2.4 Billion. By the end of April, 4.2 million homeowners should receive a check, with the total payout by then equaling about 90% of the final expected total amount. If you have any questions about your eligibility or your check, call Rust Consulting, the paying agent, at 1-888-952-9105. And, as always, Good Luck.

The Check Is In The Mail--SO WHAT!!

It seems that some of the payees of the recent foreclosure settlement between the 13 major lenders and servicers has run into a glitch. As noted here previously, checks were being mailed out to those who were authorized to receive them, and varied in size from a few hundred bucks to thousands. Rust Consulting was the paying agent for the settlement, as had also been noted here. The actual paying bank was Huntington National Bank, a good quality regional bank based in Columbus, OH. Unfortunately for some payees, a number of the checks bounced for insufficient funds. At least that's what the payees were told by their own banks when they tried to cash or deposit the checks. Out of a total of 1.4 million checks sent out, only a relatively small number bounced, but if the rubber check was yours, it clearly wouldn't make you feel any better to know that most of the checks sent out cleared. However, according to both the Fed and to Rust Consulting's senior VP, James Park, the causes of the glitch have been remedied and all checks are now being honored. In case you have any problems with your check, or haven't received it, call Rust at 1-888-952-9105, any time from Monday through Friday from 8 a.m. until 10 p.m. or on Saturday from 8 a.m. to 5 p.m. EDT. According to Rust, about 90% of all payments should have been mailed out by the end of this month, with the remainder being sent in mid-July. One important note: if your payment is coming from Goldman Sachs or Morgan Stanley, no payment date has yet been scheduled, so you may have to hold on for a while. If I hear anything on this, I'll of course post it here immediately. Meanwhile, as always, Good Luck.

Scams--BEWARE!!

I know I've written about this before, but, as time goes on, people either sometimes forget the message or hadn't seen the original one. As with any serious issue, along with legitimate assistance to people in trouble, there are those others who, like maggots, crawl out from under the nearest rock beneath which they have been hiding. In this case, it's foreclosure relief scams. Although the numvber of forecloseures are decreasing from their highs of a couple of years ago, the number of scams reported has increased dramatically! It's as if these scum realize that their time at the trough of other peoples' misery may be coming to a close, so they want to make sure that they don't miss a chance to screw anyone, possibly you, out of their homes. Latest stats out show that, according to the Financial Crimes Enforcement Network (FinCEN), while total cases dropped to about 69,000 reported cases of all types in 2012, the number of scam 'rescues' appears to have reversed itself. In the last reporting period, an increase in rescue scams of over 54% from the prior year was reported. So, the word here is: if it seems too good to be true, it probably is. If you still want to avail yourself of a 'wonderful' offer to avoid foreclosure, ask for references from the person making the offer and ask for time to check them out with local police and regulatory authorities, as well as local banking officials. If the offeror tells you there's no time for such checks, or you have to act now or you'll lose your chance, let him go--this is the first sign that the only one he's truly interested in helping is himself. As always, Good Luck.

The Check's In The Mail!

I wrote here not too long ago that settlement checks from the unprecedented foreclosure settlement would be sent to a large number of borrowers who were, or may have been, wronged by their mortgage lenders. The checks, ranging from a minuscule $300 for those who were wrongly denied a loan modification, up to $125,000 for military who were wrongfully foreclosed in spite of the federal law prohibiting such action against an active duty service member, as well as a similar amount to 53 homeowners who were wrongfully foreclosed upon even though they weren't in default on their loans at all, will begin to be mailed this week, according to both the Federal Reserve and the US Comptroller of the Currency. Final checks will hit the mail in mid-July. If you have any questions about your payment eligibility or the status of your check, you can call the paying agent, Rust Consulting. Their telephone number is: (888)952-9105. As always: Good Luck.

Dual Tracking Still Exists in California!

It's illegal; it's severely criticized and it's still happening! Dual Tracking is a process by which lenders dealing with distressed housing simultaneously consider loan modifications while continuing to move the same property along in the foreclosure process. The problem with this procedure is that a borrower can be right in the middle of a potential successful loan modification of their mortgage, thinking they're safe for the time being from the risk of foreclosure and, BOOM--they find they've been foreclosed upon. The reason is that while they were faithfully, and in good faith, working with one individual representing their lender, someone else working for that same lender was moving the foreclosure along because he had neither received any new payments nor been informed that his institution was engaged in considering a loan mod for the homeowner. When the time to foreclose came, he foreclosed because no-one told him to do otherwise. He was on a dual track. Under both the recent national mortgage settlement with the largest mortgage lenders and the California Homeowner Bill of Rights, dual tracking is supposed to cease. The CHBR is state law, and bans the process after January 1, 2013. A survey by housing counselors in the state shows that four of the five biggest lenders are still regularly dual tracking their borrowers. In sync with these violations is the fact that once a homeowner requests a mod, they are to be provided with a Single Point of Contact (SPOC) who will be the only individual they have to deal with during mod negotiations, thus avoiding the potential risks entailed in dual tracking. The counselors found that in many cases, the SPOC was either very difficult to contact or didn't know either the status of the borrower's case or was uninformed of the methodology and/or procedures related to the process, and thus couldn't provide the homeowner accurate and complete information even when the borrower could reach the SPOC. If you are facing possible foreclosure, are located in California and are also trying for a loan modification, call your SPOC to be certain that individual is on top of your case, and that there is no dual tracking happening to you. Specifically ask him/her to confirm that no foreclosure process is currently moving on your home if you are anywhere in the overall mod process. If you are unable to ascertain this from your SPOC, cannot contact your SPOC, or get no response at all, contact your state legislator, the California Banking Commissioner, and, if you don't mind the publicity, your local newspaper and/or TV station. Let them know the issue and ask for some assistance. As always, Good Luck.

Loan Mods Without the Paper

One of the reasons why some folks don't take advantage of the potential lifesaving device known as a loan modification as a method of avoiding foreclosure is that there is "so much paperwork" to get through. Well, in some cases, that issue may just have become a thing of the past. Yesterday, Fredie Mac and Fannie Mae announced a program that will allow loan mods by a fast track method not using paperwork. Not everyone will qualify, but for those with the following qualifications, they can take advantage of the program. The required pre-requisites are: the loan must be delinquent between 3 and 24 months; it must also be at least a year since it was made; must be guaranteed by either Freddie or Fannie;and must have a loan balance equal to at least 80% of the home's current value. Another unique set of features is that you do not have to verify employment or prove you have a hardship, both items most other loan mod programs do require. Borrowers also must start making the new payments. Once they have made three consecutive ones on time, they'll sign a document making the mod permanent. Prior missed payments will be added to the loan balance, the loan's term will stretch out to 40 years and the interest rate will be at Fannie or Freddie's standard mod rate, which changes regularly. But not to worry there either. Once your loan is agreed to the rate it starts it will be fixed for the life of the loan. The program begins July 1, 2013 and continues until August 1, 2015, and can even be used for rental or vacation properties one may own. There are a few other details, but check with Fannie or Freddie to get the full details and start your mod working as soon as the program begins. The agencies' websites are: www.freddiemac.com and www.fanniemae.com . As always, Good Luck.

Being Stalked by a Zombie?

I know you're thinking, "What is this? Some kind of ad for a new TV show or movie? The latest example of the 'Zombie Fad'? I only wish it were that simple. However, there is an increasingly disturbing form of foreclosure that has been climbing the charts in terms of frequency of occurrence and aggravation for homeowners. This is the Zombie Foreclosure. While the zombies of myth and legend will eat you and any of your fellow humans live, these are far more destructive to your peace of mind and financial health. Their diet is focused on your home and financial well being. The way these come about is a bank commences foreclosure proceedings, but for any number of reasons, never completes the process. This leaves you, the homeowner, thinking you've lost your home already. It's very likely you've already moved to a new residence, thinking that the foreclosure has been completed and you not only don't own the home any longer, but are also off the hook for any ongoing homeowner obligations. These can be property taxes, HOA dues and fees, and any number of other such expenses that an owner would be responsible for. However, because the lending bank never completed the foreclosure, the name on the title remains: YOURS! Because of that fact, you are still liable for all of the aforementioned fees, charges, taxes and other related expenses a homeowner would bear responsibility for. Often, the first indication you may receive that all isn't as you believed it was is when you receive a new default notice, or a collection agency starts calling you and making a nuisance of itself trying to collect sums they believe you owe--and, legally, you very well may! So, what do you do? Well, the first thing to do would be to check the tax records in your county to see whose name is on title. If it shows the foreclosing institution or some other entity, you should acquaint whomever is pestering you of the realities of who is the current legal owner, sending them a copy of the record and requesting confirmation that they've received it. If, however, your name is still on title, your task may be a bit more arduous. If you find your name on title, call your lender who you thought was foreclosing and determine what they plan to do with your home. If they have not, in fact, foreclosed and have no immediate plans of doing so, you may be in time to do a loan modification, a short sale or a deed in lieu. Which would be best for you will vary from acse to case, and you should talk with an attorney and your accountant or financial advisor to decide. Also, check to see what fees, property taxes or assessments may have accumulated, as well as what the physical condition of the property is. If you're on title, the expenses would continue in your name unabated. As for physical condition, often homes that remain empty for long periods of time become havens for squatters, drug users and other undesirable occupants. As they don't own the property, they often take less than the best of care of it and the damage may be more than you would like to take on should you successfully reclaim your home. Having said all of this, if you do want to get back into the home, and can obtain an accommodation with your lender regarding your defaulted loan, then by all means you should move forward and begin the process. As always, Good Luck.

Freddie Mac Complaints Not Handled!

In a report just released, the Federal Housing Finance Agency (FHFA) announced that many consumer complaints have been not handled correctly or, in some cases, totally ignored! While not all were related to foreclosure actions, a large number were. While each case should be handled on its own merits, the best way to get yours moving, if you feel an error has been made, is to get in touch with the FHFA Inspector General. The FHFA website is: www.fhfa.gov . Once on the site, navigate according to the page directory along the side. As always, Good Luck.

Possible Relief From Mortgage 'Help' Scams

The Federal Trade Commission (FTC) recently mailed out a number of checks to homeowners and former homeowners who were damaged to varying extents (including loss of homes) by a rather nasty mortgage "assistance" scam that went on during and immediately before the recent recession. Over 17 thousand checks were mailed out, and, while they were by no means substantial, every little bit helps. Unlike othetr settlements I've written about covering losses of homes and related losses, many of which were for thousands of Dollars, these checks only attempt to allow scammed homeowners to recoup some, if not all, of the fees they were charged by the cheats running the scams. Typicaly, these fees were charged up front for alleged assistance in avoiding foreclosure or restructuring mortgages that were overwhelming the owners. The particular scam referred to here is the Residential Relief Foundation. It is now banned from offering 'mortgage relief' programs. As noted above, the money is small, as it only attempts to cover some of the upfront fees charged for the so-called assistance. Thus, each check is for $62.50. If you have any questions about your eligibility, contact the refund administrator, BMC Group, at (866) 224-6718, or visit www.FTC.gov/refunds for more general information. As always, Good Luck.

From The Settlement Comes (Some) Cash!

Well, for those of you awaiting some form of relief from the previously announced $9.3 Billion settlement on foreclosures between the Feds and 13 lenders, some cash is finally on the way. This cash does not cover all of the $9.3 Bn agreed upon, but only the cash payment portion of the deal. Beyond this there is still some sizable amount, about $5.7Bn of 'foreclosure prevention assistance'. Eligible homeowners will shortly receive a post card regarding their eligibility from the paying agent, Rust Consulting. This card will arrive in about 2 weeks, around the end of the month. About 4.2 million people are estimated to be in line for this, according to the Fed and the Office of the Controller, the federal agencies overseeing the implementation of the deal. This card will be followed in 4-8 weeks by further correspondence and the actual payment. If you think you're eligible or are unsure about your status, you can contact Rust Consulting at 1-888-952-9105. The banks and servicers covered by this payment program are: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo. There are three other institutions that were part of the original settlement that didn't agree to this payout program. They are Ally Financial, EverBank, and OneWest. Negotiations with them are still ongoing. For all those of you who had loans from the aforementioned institutions, or were serviced by same, not every loan is eligible for payment. So, a call to Rust is a good idea. In any event, good luck to you all.

Military Foreclosures

I have briefly discussed this issue previously, but recent statistics have provided a good reason to get it out there again. As more and more digging into the foreclosure records of the large mortgage lenders is completed, it becomes very increasingly obvious that there are a great many homes foreclosed upon that were owned at the time of their foreclosure by active duty military personnel. This is, under Federal law, ILLEGAL! If you are (or were at time of foreclosure) on active duty military service and lost your home to foreclosure, call your attorney as well as your lender IMMEDIATELY. Prompt action should be taken to either have your home returned to you, or to receive financial compensation for your loss. If you're not certain of your status, then contact an attorney. If you cannot afford one, check with legal aid for help with an attorney. Don't wait--do it NOW--that's an order! And, as always, Good Luck.

Zombie Foreclosures: They're Not From the Movies!

Have you unfortunately already lost your home to foreclosure? Did you go via Deed in Lieu? Perhaps you had 2 or more loans when the hammer fell. Well, for some of you out there, we are seeing a disturbing detail of the foreclosure situation rising as we speak. This is the so-called Zombie Foreclosure. It has nothing to do with that scary movie or TV series that you may have recently seen. Rather, it involves finding an unexpected letter in your mail or receiving a threatening phone call from a collection agency chasing you for money that you didn't know you owed, and which, for the most part, you don't owe! Here's the way it works. You lost your home either by deed in lieu, or, if by a regular public foreclosure auction, to a foreclosing lender of your first mortgage, but you also had a second mortgage as well. In the former case, in far too many cases, the foreclosing bank either forgets to complete, or incorrectly completes, the documentation relating to transfer of title from you to them. The tax collector as a result never is notified that you no longer own the property, so he believes, incorrectly, that you are still on title. You, not owning the property any longer, have no reason to continue paying property taxes on it and do not,in fact, pay any such taxes. The tax collector, acting on erroneous information, passes your account to a collection agency and they start chasing you for taxes that you do not owe! Getting rid of them then becomes all too often like something out of Michael Douglas's efforts in the movie, Fatal Attraction, to rid himself of an extramarital girl friend. Try and prove you don't own the house--to the agency's satisfaction. That can be a real adventure! Alternatively, your lost your home to a foreclosing lender that held the first mortgage on the property. Unfortunately, even though the foreclosure wiped out any second and successive lower mortgages, THEY (the lenders) aren't giving up! They pass on the amount you owed at the time of foreclosure top a collection agency, with instructions to go after you for the amount they believe is still due. Again, getting the agency off your back can be a monumental task. In either case, you very well may have to engage legal counsel, and, if you couldn't pay your mortgage, how do you do that? You may want to talk with Legal Aid, or find a lawyer that does pro bono work, or locate counsel that will take on the bank AND the collection agency in a lawsuit to: get them to stop hounding you; and pay you compensation for the continued aggravation, as well as any damage to your financial standing and/or reputation. Fortunately, these zombie foreclosures are the exception to the rule, but they are on the rise. Hopefully, you're not one of them, and if you are, you can get help to end the chase. As always, good luck.

Has the Economy Helped You Out of Trouble?

Well, as most of you are painfully aware, the past 5 plus years have been a real weight dragging many down to foreclosure or the slightly better negative of a short sale. In some cases, the issue has been, or had contributing to it, the dramatic drop in value of one's home as the housing market crashed along with the economy. Well, as things have slowly started to turn around, the reverse is becoming more true by the day. When prices for homes dropped through the floor as the Great Recession took hold, they basically gutted whatever equity owners had in their residences. As things have turned the corner and values have again begun to rise, some homes now have, or are approaching, a positive equity again. If your equity is in positive territory again, it may allow you a better opportunity to refinance or sell in a regular, not short, sale transaction. So how do you know what your home's value is? You could get it appraised, but that will cost you several hundred dollars that you may not have or feel comfortable parting with at this time. An easier way is to call a Realtor. If you still have contact with the Realtor who helped you purchase the home, call him or her. If not, pick up the phone and contact a local real estate brokerage nearby, or, better yet, ask one of your friends or co-workers if they know a good Realtor. Most agents will be only too happy to give you a valuation on your home. Once you have that figure in hand, you can make a better decision about where you go (or stay) from here. With this in mind, if you're in Marin County in California, call me for a free valuation and a discussion of the market. In any event, good luck.

Foreclosure Settlement Payments to Date

Well, as you know from our prior posts, last year the attorneys general from 49 states reached a major agreement with the five largest mortgage lenders over the issues of improper foreclosures and related issues. In many cases the lenders were to pay affected homeowners various sums of money related to improper foreclosures or denied loan mods or short sales. This process is still going on, but, thanks to the Office of Mortgage Settlement Oversight, we have an accounting of how much has been paid so far--a scoreboard of sorts, if you will. According to the OMSO, total payments, adjustments and settlements under the agreement to date total $45.83 Billion made to a total of 550,000 homeowners. This is a pretty impressive sum, but it is not the final total as other settlements are still being worked out. Of the total so far, $24.7 Billion went to pay for 'relief to support home ownership'. An additional $19.5 Billion went to short sales. Complaints and claims are still coming into the OMSO, now at a rate of about 830 per month since November 2012, up from an average of about 550 per month in the first six months of the program. If you think you have a legitimate complaint and haven't yet filed it and your lender was one of the following,Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial, don't hesitate--get on the horn to OMSO and get your claim filed! As always, Good Luck.

Eminent Domain Foreclosure Scheme Rejected in So. Cal.

Last year some local investor groups (Mortgage Resolution Partners) in southern California, specifically, San Bernardino County, pitched the idea OF using EMINENT DOMAIN as a way to foreclose on underwater homeowners and get values going at more market realistic levels again. The idea was to foreclose on the mortgages that were underwater, then revalue at existing market values and refinance them. Only trouble is that a number of homeowners who were, for the most part, still hanging in there and making payments would have found themselves out of their homes. Last month the Joint Powers Authority (JPA), formed by the county and two of its cities, Fontana and Ontario, to consider the idea rejected it. They noted that to permit such a use of eminent domain would not only harm more homeowners, it likely would also weaken further the already reeling local housing market.

Jobs--They DO Affect the Housing Market!: One thing that is always in play regarding availability and, more importantly, the costs of homes is the relevant local job market. It isn't surprising that this is the case. If people aren't working, they're not likely to be considering the purchase of a home--first home, move-up or anything else. No income, no buy--very simple and logical. So, when the local job market improves, that means more folks are probably going to be out there looking to purchase a home. This, in turn, will likely drive prices up, relative to the market. Recent statistics show that San Francisco is now the third best job market in the country, right behind Austin, Texas and Washington, DC. Such a good rating only bodes well for sellers. Given the continued relatively low interest rates, it can also benefit buyers if sellers start to jump on the bandwagon too. The site, NerdWallet noted that San Francisco’s high median household income (No. 2 at $72,947) offsets the city’s high cost of living. “With Silicon Valley nearby, San Francisco has become a tech hub in recent years, and its population growth indicates the city is home to many transplants,” NerdWallet said. “Tech and tourism dominate the job market in San Francisco, and tech giants such as Facebook, Google, Twitter, Yelp, and Dropbox are located in or just outside the city.” The job-seeker rankings were based on income, cost of living, the unemployment rate, and population growth. NerdWallet also recently ranked San Francisco the 10th best city for recent college graduates, citing its “walkable layout and great social scene,” and the fourth most expensive city. The site produced the rankings with its new City Life Tool, available online, which provides extensive demographic profiles of 26 of the nation’s largest cities based on data from the U.S. Census Bureau, the Council for Community and Economic Research, and other sources. Although NerdWallet is talking about the San Francisco job market, with Marin being one of the leading up-scale housing areas serving the City, means that this SF job market directly affects the Marin housing market. If you've been uncertain about your own situation up to now, perhaps these stats will cause you to rethink things. Questions? Call us: Peter: (415) 279-6466; Jane: (415) 531-4091.

Possible Good News in Florida: There is a bill in the Florida legislature, authored by Representative Kathleen Passidomo of Naples, HB 87, which, while making some foreclosures easier, will also have safeguards against some wrongful foreclosures. In the protection section of the bill is a proposal that would institute much tougher guidelines that banks and other lenders would have to abide by in the area of actually being in possession of required paperwork before foreclosing. In other words, they'd have to prove that they actually had the necessary legally required documents to foreclose instead of just claiming they had them without needing to show physical proof of that fact. This, ostensibly, would reduce wrongful foreclosures in many cases where the lending bank or its servicer didn't actually possess the documents proving the existence of the loan. Without these docs, supposedly a foreclosure can't legally be supported, and thus, cannot proceed. Separately, the proposed law would also limit time frames for lenders to pursue deficiency judgments. Current law allows a lender to file such a legal action any time within five years of the foreclosure. The new proposal would cut that to just one year. For those of you unfamiliar with deficiency judgments, they occur when the lender forecloses on a home and the home's value or the amount received at the foreclosure auction fails to equal the amount owed on the mortgage. If the amount realized from the foreclosure is less than the loan amount, the lender then files a suit requesting the difference from the former homeowner that the foreclosure was deficient. It's bad enough you've lost your home. Now the bank wants to get whatever amount the foreclosure failed to produce directly from you. Perfectly legal, but a hell of an extra dagger in the ribs to one who's lost their home. Questions? Check with your local state legislator. He's working for you, so make him provide you with the correct info. It may save you your home, or, failing that, a sizable chunk of cash, post foreclosure.

Prices Continue to Climb; Rates Remain Low!: Well, the following relates to the latest numbers available for the State and also pretty accurately reflect on the status of things in Marin County. Given the conditions that helped generate these numbers, it is very reasonable to expect a continuation as we move deeper into 2013. Rates remain in the mid-3%'s for 30 year fixed loans and inventory is still well below normal levels at all price points. What does that mean? As with any item that is in demand, it will continue to drive prices up and we have seen more multi offers in 2012 and are continually seeing some in the early days of 2013. So, without a further word, on to the stats and info. Home prices rose dramatically across the Bay Area in December, led by Contra Costa County, where the median sale price of single-family homes jumped 22.9 percent from a year earlier. San Francisco finished a close second, with the median price up 22.3 percent, according to a report released this week by the California Association of Realtors. The median price rose 21.8 percent in Sonoma County, 17.8 percent in Alameda County, 14.8 percent in Marin County, and 4.5 percent in Napa County. Across California, the median sale price rose 27 percent, which the C.A.R. attributed to a significant increase in sales of higher-priced homes last month and a shortage of lower-priced homes on the market. For all of 2012, the median sale price rose 11.6 percent in California. The median sale price indicates that half the prices paid were higher than this number, and half were lower. Medians are more “typical” than average prices, which a relatively small share of transactions at either the lower- or the upper-end can skew. California home sales edged up 0.9 percent in December from a year earlier and declined in all but one Bay Area county. Sales rose 29.7 percent in Marin County but fell 17 percent in Napa County, 7.9 percent in Sonoma County, 6.9 percent in Contra Costa County, 5.3 percent in San Francisco, and 1.5 percent in Alameda County. For the year, home sales statewide rose 5.4 percent from a year earlier. Not only is this info of value in making a decision on selling or buying your own home, but it also is helpful in your decision as to whether or not to buy an investment property this year. Remember, not only can investment real estate be a great way to increase the value of your personal estate, it can also provide unmatched income tax writeoffs for you. These can include depreciation and the costs of maintenance of the investment property that are not available for deductions on your personal residence. Check with your CPA for more details as to how it could exactly affect you. If you need assistance on these or any other real estate needs, don't hesitate to call us: Peter: (415) 279-6466 or Jane: (415) 531-4091. Enjoy the Super Bowl on Sunday!

LATEST SETTLEMENT NEWS!: Lender Processing Serviuces (LPS) and its subsidiaries have reached a settlement with the attorneys general of 46 states and the District of Columbia in a large series of roboprocessing claims against LPS et al. The agreed settlement amount is $127 Million, and also precludes further use of the techniques/tactics LPS et al previously used in completing foreclosures. No info was announced from the settlement details as to whether any of the robosigned foreclosures will or can be reversed or compensated, so, if you feel you were robosigned out of your home, you may want to check with your state AG. As always, good luck.

Two For The Price of One! (so to speak): In addition to my comments on this site about home inspections, I also wanted to bring you some market current info on the state of the market--and it's definitely GOOD! The following info is more general to the overall market, but--take note--it applies even more so in Marin! Research firm CoreLogic issued the first full analysis of the 2012 housing market Monday, and it confirms the good news we’ve been reporting for months now: Homes sales and prices are rising, new-home construction is back on track, and foreclosures are down dramatically. Even better news: “The housing market enters 2013 poised for further recovery, with improvements in prices, sales and serious delinquencies,” Core Logic wrote in its latest MarketPulse report. “This is an extremely positive development for the economy because the real estate cycle drives the business cycle … that drives economic growth.” Home sales rose 6 percent in 2012 to 4.2 million, the first increase since 2005. Equity sales – excluding foreclosures, bank-owned properties, and short sales – jumped 11 percent to 3.2 million, while new-home sales increased 3 percent to nearly 300,000. Home prices, meanwhile, rose 6.3 percent, year over year, for the largest increase in six years. CoreLogic said home prices “are by far the most important indicator in the housing market because they have strong ripple and housing-wealth effects.” The research firm credited the price rise to a “massive reduction” in bank-owned homes for sale and the historically low inventory of homes on the market. Bank-owned homes are a drag on overall home prices because they typically sell at a discount of 20 to 30 percent. CoreLogic said sales of bank-owned homes are down 60 percent from their peak in April 2009, indicating that the housing industry is “transitioning to a more stable, long-term recovery.” The drop in foreclosures also signals an improving economy. At the end of November 2012, there were 2.6 million mortgages in serious delinquency – 90 days or more past due – down 15 percent from a year earlier and down 28 percent from their peak in January 2010, according to the report. Looking forward, CoreLogic said it “expects continued market improvement, with home prices expected to rise 6 percent in 2013 due to high affordability fueling steady demand, a lower level of REO (bank-owned) sales and a low inventory of unsold homes.” Rising home prices, it said, “will slowly release the pent-up supply of inventory as under-equitied (underwater) borrowers are unlocked and opportunistic sellers begin to provide relief to tight inventories.” So, if you're planning to sell, now is a GREAT time to call us to help you list and sell your home. And, if you're a buyer, with continued low rates, coupled with the aforementioned market info, what better time to jump in and get the home of your dreams at the start of the increased values discussed above. To get in touch, our numbers are: Peter: (415) 279-6466; Jane: (415) 531-4091. Give us a call! We'd be glad to help!

THE IMPORTANCE OF INSPECTIONS: One of the routine, but still most important parts of buying a home is your investigation of the home as to its structural and related physical integrity. This can cover not only the physical condition of the home and outbuildings, but also other related factors that, while not a part of the actual structure, can have a major affect on that structure. So, just for a change, here is some good information on the inspection process. Home inspections are an essential part of the home-buying process, but what constitutes a thorough inspection and how do you find the right professional to do the job? A general inspection is meant to identify structural or systemic problems in a home: Construction: Condition of walls, ceilings, floors, foundation, insulation, and roof. Electrical: Wiring, grounding, main panel, circuit breakers, light fixtures, and exhaust and ceiling fans. Plumbing: Toilets, showers, sinks, faucets, and traps. Check condition and identify materials used for potable, drain, waste, and ventilation pipes. Systems: Water heater, furnace, air conditioning, duct work, fireplace, chimney, and sprinklers. Appliances: Dishwasher, range and oven, refrigerator, garbage disposal, washer, and dryer. Garage: Slab, walls, ceiling, garage door, and firewall. Exterior: Siding and trim, doors, windows, lights, gutters, driveways, fences, sidewalks, landscaping, and drainage. Sometimes a general inspection may not be enough. Specialists may be called in to test for asbestos, lead paint, radon, or methane gas, as well as mold and wood-eating pest damage. It’s always a good idea for buyers to be present during home inspections to get an up-close look at the condition of their new home, ask questions, and learn from the inspector’s comments. Plan on at least three hours, and perhaps five or more, for a thorough inspection. How to find the best inspector for the job? Ask friends for their recommendations, and also the real estate professional who’s assisting you in your home search – he or she has probably dealt with dozens of inspectors and can steer you in the right direction. Many skilled home inspectors do not belong to a national or state association of home inspectors, but such membership is often a plus. Organizations include the American Society of Home Inspectors, the National Association of Home Inspectors, the International Association of Certified Home Inspectors, and the California Real Estate Inspection Association. One other area that inspections can be very helpful is in the selling of a home! That's right--I said 'Selling'. How, you may ask. Simple, we recommend at least a pest inspection before placing your home on the market. If it appears necesary, we'll also recommend other types of inspection. The reason is that you know before ever going to market what, if anything, may be an issue. You then have the option of getting it repaired or not, and noting this to prospective buyers when you provide them with the report(s)O as part of your disclosure. You also can take into consideration any issues when you price the home for sale, and make it clear that you have done so, to any buyer that may want to bargain over price due tot the issues in the report. Need advice on getting inspections, or who to use? Give us a call. As always, we'd be glad to help. Call Jane: (415) 531-4091; or Peter: (415) 279-6466.

The Latest News: Just returned from the annual CyberStars Summit conference, held this year in San Diego. For those of you who aren't familiar with the CyberStars, it's an invitation only group of Realtors across the country who are renowned for using the latest in technology to assist their clients in the purchase and sale of real estate. There are about 225 of us, and Jane & I have been members for over 10 years now. At the conference, we received lots of great info and as the year progresses, you will all see and be the beneficiaries of this info as we put it to work to make your real estate transactions smoother and easier. If you'd like more info, just give us a call or email. Best regards, Peter

HARP Petition: For those of you who aren't aware of it, the White House has a petition filing place on its web site that allows anyone to file and/or sign a petition to the White House on any subject. If the number of signatures reaches, the WH will reply to it. Now, this doesn't in any way have the force of law, but if enough signatures land on a petition, it CAN lead to someone initiating the process that would lead to a law. Currently, a petition has been established to eliminate the HARP eligible mortgage cutoff date. Under HARP, to be eligible, your mortgage has to have been in force no later than March 31, 2009. Under the petition, if it ever led to a law, this date would cease to be a cutoff and any eligible mortgage would be able to apply for HARP program relief. So, what to do? SIGN--NOW!

NEW RULES TO PROTECT AGAINST FORECLOSURE

NEW RULES TO PROTECT AGAINST FORECLOSURE: The Consumer Financial Protection Bureau (CPFB) has announced new rules that may help in avoiding foreclosure--or at least delaying it while you try to make some arrangements (refi, loan mod, etc.) to avoid the foreclosure. The title of this item is a bit misleading--if you don't pay your mortgage and are unable to get a loan mod, you WILL lose your home. However, the new rules can help. One is that lenders/servicers cannot commence foreclosure proceedings until at least 120 days after you miss a payment. In some states under traditional methods, a lender could file a notice of default, beginning the process, the day after you missed a payment. This new 120 day rule gives a homeowner more time to initiate and possibly complete some alternative plan to avoid foreclosure. Another rule requires lenders no longer follow a 'dual tracking' process. Under this process, even if you were seeking a loan mod from your lender, the foreclosure process ground on, often side by side with your loan mod app. You rarely had only a designated single person from the bank to talk to, and, consequently, the right hand never knew what the left was doing. Result? Foreclosure in many cases where you might have qualified for the mod, but for the foreclosure process going on. Yet another rule now requires that in cases where you've filed a loan application at least 37 days before a scheduled foreclosure sale date, the lender must give full consideration and decision to that app before continuing the foreclosure (this continuation would only then occur if your app was denied). Another rule requires that the lender or servicer provide you with written notice of your options once you have missed two payments, and also requires you be given acces to the person(s) responsible for updating the status of any loan app or mod app you may have in process. There area a number of other rules as well and the new rules do NOT apply to all lenders. Exempted form the rules are small lenders/servicers handling fewer than 5,000 loans. Want more details? Go Online: www.consumerfinance.gov, which is CFPB's web site. As always< Good Luck.

HUGE FORECLOSURE ABUSE SETTLEMENT: Federal regulators have reached a settlement with 14 major banks regarding mortgage foreclosure abuses and errors on past foreclosures. Totalling $10 Billion, distributions will include $3.75 Billion to homeowners who were foreclosed in 2009 and 2010. Among the 14 lenders are Aurora, Bank of America, Citibank, JPMorgan Chase, MetLife Bank, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo. Another $6 Billion will be provided to homeowners currently facing possible foreclosure because they are behind on their payments. If you were foreclosed upon in either of these years, or are in default currently on your mortgage, IMMEDIATELY CONTACT YOUR LENDER TO DETERMINE YOUR ELIGIBILITY for participation in these payouts. As always, I wish you Good Luck. This definitely is good news.

Help From The Cliff

On November 21,I had written here that the Mortgage Forgiveness Debt Relief Act was due to expire on December 31 (2 days ago), and strongly recommended that anyone possibly affected by its potential demise should immediately call, write or email their Congressional reps in the House & Senate, and demand that it be extended. Well, one of the many benefits of the passage late last night of a deal to avert the 'Fiscal Cliff' was inclusion in the bill averting the cliff of the extension for at least another year, to December 31, 2013. In case you have forgotten the details, the law allows homeowners going through short sales, modifications and/or foreclosures to avoid income tax liability on any forgiven debt as a result of the transaction. A cautionary reminder is also important here: only debt incurred on your home between two specific dates is covered. For details as to exactly how, or if, you are covered under the law, contact your accountant or tax preparer immediately if you are involved in any of these situations. Another benefit of the Cliff avoider is that, while capital gains taxes will increase from 15% to 20%, capital gains tax rates on sale of a personal residence will remain at 15%. So, if you are selling your home to avoide foreclosure (or for any other reason), and have a gain in value from when you purcheased it, you will still only pay capital gains tax at a rate of 15% of the gain, just as before the Cliff avoider passed last night. Congratulations to everyone in these circumstances, and a big 'thank you' to Congress for finally getting off its collective ass and doing something to help the country and its citizens! As we enter the New Year, continued Good Luck.