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Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Fri, 03 Aug 2012 01:28:33 +0000

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Welcome to the New Short Sale Escalation Web Tool

As a valued partner, you are part of a small group of real estate agents who are being granted access to a new Bank of America web tool that will allow you to escalate a short sale issue when necessary.

Keep in mind, that there are specific guidelines for a short sale escalation, as well as steps you should take before a submission:

A Guide for Agents

– November 2011

Short Sale Escalation Guidelines

THIS INFORMATION IS NOT INTENDED OR AUTHORIZED FOR CONSUMER DISTRIBUTION

• To Consider BEFORE Escalating

• Several factors contribute to the timeframe of a short sale.

Bank of America uses the Equator short sale processing

system. Equator is a task driven system and each task has a

specific deadline.

• Agents must educate themselves on the process and review

the tasks and messaging in the system to assess the progress

of the transaction.

• Before submitting an escalation, agents need to ensure they

have exhausted the following resources:

– Contact the assigned Short Sale Specialist through a message in

the Short Sale Processing System (Equator) and allow at least

two business days for a reply

– Contact the team lead through the Short Sale Processing System

(Equator) and allow at least two business days for a reply

– Contact Bank of America’s Short Sale Customer Care line at:

1.866.880.1232 (Monday to Friday 8:00 am – 10:00 pm Eastern

and Saturday 9:00 am – 5:30 pm Eastern)

2Short Sale Escalation Guidelines

• To Consider BEFORE Escalating

Agents should review and understand the following guidelines

before accessing the escalation web tool and submitting an

escalation:

• Transaction specific information will only be discussed with

homeowners or their authorized third parties. Due to privacy reasons

Bank of America can only provide loan specific information to

homeowners or authorized third parties (where proper third party

authorization documentation has been reviewed and approved by Bank

of America). If you are a buyer’s agent we will acknowledge your

escalation but will reach out directly to the listing agent.

• All escalations must be submitted through the designated escalation

web tool. Once an escalation is submitted, please avoid contacting

Bank of America Mortgage Loan Officers and other associates about the

case to prevent duplicate efforts that may slow down the response and

the overall process.

• To access the escalation web tool a username and password will be

required. An email with a link to the web tool and registration

instructions will be sent to all agents who have been authorized to use

the new tool.

Only a very small portion of short sale files should require an escalation at any given

point in the process. Agents must carefully assess the situation and determine if an

escalation is needed:

A Short Sale Escalation IS A Short Sale Escalation IS NOT

• An avenue to resolve one or more of the following issues

related to the short sale process for a specific property:

• No response to attempts to contact the Short Sale Specialist

and Specialist’s team lead (allow for two business days to

receive a response after attempt contact)

• A decision on an offer (approval / rejection) has not been

communicated in 45 days

• The buyer is going to walk and a decision on an offer (approval /

rejection) has not been made within the 45 day time frame

• If settlement statement has not been approved at closing

• An avenue to get answers to questions that have not been

answered by the assigned Short Sale Specialist or Team Lead

• A way to get a status update

• A way to expedite a short sale

• A guaranteed method to get a short

sale approved

• A way to get general questions about

the deal or the short sale process

answered

• A way to bypass working with your

assigned Short Sale Specialist

• A forum to obtain general assistance in

using EquatorShort Sale Escalation Guidelines

• What to expect AFTER Escalating

• Within two business days of submitting your escalation, you will be

contacted by a Bank of America representative to acknowledge that the

escalation was received and outline next steps.

• The actual resolution of an escalation can take up to 30 days,

depending on the issue, as it may require additional research and

response from other partners (investor, MI company, etc).

• If you have submitted escalations in the past and have interacted with

a Bank of America escalation representative, please do not contact the

same representative directly if a new escalation arises. Agents are

expected to submit new escalations using the online form only.

5Short Sale Escalation Guidelines

• Additional Information and Education on the Short Sale Process

• Agent Resource Center:

bankofamerica.com/realestateagent

• Equator: www.equator.com

• Bank of America Real Estate Center:

bankofamerica.com/realestatecenter

• Bank of America Home Loan Assistance:

bankofamerica.com/homeloanhelp

• Dedicated Customer Care: 1.866.880.1232 (Monday to Friday

8:00 am – 10:00 pm Eastern and Saturday 9:00 am – 5:30pm Eastern)

To use the escalation tool, you will need to access http://realestateagent.bankofamerica.com/shortsaleescalation and log in with your username and password. A quick reference guide provides the login instructions for your first visit to the Short Sale Escalation Tool.

Only certain pre-selected and pre-approved agents will be authorized to use this tool. They will be informed by a welcome email such as this one.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

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Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Asset Protection | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Tue, 03 Jul 2012 21:22:08 +0000

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

The first 10 years of my real estate investing I ran my business as a sole proprietor because I really didn’t know any better. Luckily, I survived with only minimal damages, but there comes a point when it is time to assess the best legal structure to use for real estate investing.

If you ask 10 experts you are likely to get 10 different opinions. With that in mind, I’ll share my opinion and experience. Remember: free advice is always worth what you pay for it.

If you are a beginning investor, it’s probably best to not worry about asset protection until you actually have a few assets to protect. Why spend time and money setting up a business entity and creating tax reporting requirements unless you need to? It’s like buying full coverage auto insurance on a beat–up Gremlin…what’s the point?

Once you have assets and something to protect, then it’s time to set up your business structure. Question # 1: what is your net worth? Question # 2: do you have assets that are at risk? If the answer to either of those questions is, “Yes,” then you need to take the next step.

Assuming you want to set up an entity for wholesaling properties, the most popular are an LLC (Limited Liability Corporation) or a C Corporation. There is much debate about which one is better, but I prefer the C Corporation because the first $50,000 is taxed at 15% and you can have a kick-butt employee welfare plan to write off many expenses. With an LLC, the income is passed through. If you start making money, you’ll wish you could pay only 15% on some of it! Trust me on this one.

Why is the tax issue such a big deal?

Here’s a simplified example. If you make $100K personally you are taxed on the full amount (35%) and have $65,000 left. Anything you buy for yourself comes from after-tax dollars. However, with a C Corporation if you could make the same $100K on paper, but have $50K in allowable expenses that you can write off. So you get taxed on that $50K at 15% and only have to pay $7,500 in taxes compared to $35,000 on your personal income.

What type of expenses can you write off in a C Corporation? It depends on how your Company is structured (see your accountant/attorney for details), but you can often write off basic expenses of things like a bed or even a swimming pool. You’re thinking, “No way!” Let me explain how it’s done. If you have an employee welfare plan that covers your medical expenses and your doctor gives you a prescription for aqua therapy, it’s possible to write off the cost of the swimming pool. Yes, it’s crazy, but I don’t make the laws. Another more common example is a prescription for a new bed if you have a bad back. I have a “Sleep Number” bed myself, just like Paul Harvey J.

A very wealthy man once told me “It’s very hard for a C Corporation to make any money!” What he was trying to illustrate was that C Corporations can expense pretty much everything and look like there is little or no profit. You still can buy the same stuff, but you are taxed less if you structure things correctly.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

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Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Personal Safety | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Fri, 29 Jun 2012 18:58:05 +0000

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

A major concern for realtors is personal safety. Many times the realtor is working alone in showing a property, having an open house, or manning the model house in a new subdivision. Some personal safety issues should include:

On the first meeting of a client, have them meet you at the office. Get as much personal information as possible. A copy of the driver’s license is a good start not only for safety, but also for the client database.

If you have a strange feeling about the client, don’t show property by yourself. Ask a co-worker to go with you; at worst you might have to split the commission. If you are manning an open house and you feel that you might be in danger, leave the property and call for help.

Always drive your own car to the property as this might be the only means of escape. On the way make notes on the type of car, color, and license plate number and call the office with this information. Once at the property make sure your car is not blocked and you have an easy escape (no backing-up).

As you are showing the property, always have the client lead you; this allows the property to present itself and keeps the client where you can see them. Make sure they sign-in on the registry and if the office does not have the information on the client, get the information to them. Your office will know you are with a client at this time.

Keep your keys and cell phone close and easy to access. If need be, keys can be effective weapon of surprise. If you have a handbag, keep it with you at all times or locked in the trunk of your car. Know the property, not only do you look more professional, but safer; your client does not know all of the exits as well as you should.

Take a few self defense classes, as a few minutes head start out of the property means the difference in a safe escape and being trapped. Take the first chance for escape and don’t try to talk your way out; keep your advantage. The more time you spend in a dangerous situation means a diminished chance of a safe exit.

Let the client see that you have contacted your office and the office knows who you are with. It is also a good idea to have a secret code for trouble such as “Pick up dog food” when you don’t have a dog. It is also a good idea to set your phone to vibrate as your client will not know if you are calling or if you are receiving a phone call.

If there is an emergency your office can play a vital role. Make sure they have the make of your car, its color, and license plate. If you are using a different car that day, make sure they have its description as well.

Make sure your office has your schedule for the day and that you check in on each appointment. If you are hosting an open house, make sure you have a registry book for clients to sign in. See if you can also include the client’s car description. Tell the client it is just in case they get a parking ticket and you want to document the reason for parking there or some other reason.

Many of these points may already in practice for the profession. Look to these procedures as also a safety concern. These safety tips should become second nature with little thought to be truly effective. Being an agent means sometimes you will work alone. With today’s cell phones and e-mail capabilities and some careful thought, you will be safer and will be in contact with help quicker.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

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Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Market | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Wed, 13 Jun 2012 17:31:21 +0000

Market | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

If you own real estate or are thinking of buying real estate then you better pay attention, because this could be the most important message you receive this year regarding real estate and your financial future.

The last five years have seen explosive growth in the real estate market and as a result many people believe that real estate is the safest investment you can make. Well, that is no longer true. Rapidly increasing real estate prices have caused the real estate market to be at price levels never before seen in history when adjusted for inflation! The growing number of people concerned about the real estate bubble means there are less available real estate buyers. Fewer buyers mean that prices are coming down.

On May 4, 2006, Federal Reserve Board Governor Susan Blies stated that “Housing has really sort of peaked”. This follows on the heels of the new Fed Chairman Ben Bernanke saying that he was concerned that the “softening” of the real estate market would hurt the economy. And former Fed Chairman Alan Greenspan previously described the real estate market as frothy. All of these top financial experts agree that there is already a viable downturn in the market, so clearly there is a need to know the reasons behind this change.

3 of the top 9 reasons that the real estate bubble will burst include:
1. Interest rates are rising – foreclosures are up 72%!
2. First time homebuyers are priced out of the market – the real estate market is a pyramid and the base is crumbling
3. The psychology of the market has changed so that now people are afraid of the bubble bursting – the mania over real estate is over!

The first reason that the real estate bubble is bursting is rising interest rates. Under Alan Greenspan, interest rates were at historic lows from June 2003 to June 2004. These low interest rates allowed people to buy homes that were more expensive then what they could normally afford but at the same monthly cost, essentially creating “free money”. However, the time of low interest rates has ended as interest rates have been rising and will continue to rise further. Interest rates must rise to combat inflation, partly due to high gasoline and food costs. Higher interest rates make owning a home more expensive, thus driving existing home values down.

Higher interest rates are also affecting people who bought adjustable mortgages (ARMs). Adjustable mortgages have very low interest rates and low monthly payments for the first two to three years but afterwards the low interest rate disappears and the monthly mortgage payment jumps dramatically. As a result of adjustable mortgage rate resets, home foreclosures for the 1st quarter of 2006 are up 72% over the 1st quarter of 2005.

The foreclosure situation will only worsen as interest rates continue to rise and more adjustable mortgage payments are adjusted to a higher interest rate and higher mortgage payment. Moody’s stated that 25% of all outstanding mortgages are coming up for interest rate resets during 2006 and 2007. That is $2 trillion of U.S. mortgage debt! When the payments increase, it will be quite a hit to the pocketbook. A study done by one of the country’s largest title insurers concluded that 1.4 million households will face a payment jump of 50% or more once the introductory payment period is over.

The second reason that the real estate bubble is bursting is that new homebuyers are no longer able to buy homes due to high prices and higher interest rates. The real estate market is basically a pyramid scheme and as long as the number of buyers is growing everything is fine. As homes are bought by first time home buyers at the bottom of the pyramid, the new money for that $100,000.00 home goes all the way up the pyramid to the seller and buyer of a $1,000,000.00 home as people sell one home and buy a more expensive home. This double-edged sword of high real estate prices and higher interest rates has priced many new buyers out of the market, and now we are starting to feel the effects on the overall real estate market. Sales are slowing and inventories of homes available for sale are rising quickly. The latest report on the housing market showed new home sales fell 10.5% for February 2006. This is the largest one-month drop in nine years.

The third reason that the real estate bubble is bursting is that the psychology of the real estate market has changed. For the last five years the real estate market has risen dramatically and if you bought real estate you more than likely made money. This positive return for so many investors fueled the market higher as more people saw this and decided to also invest in real estate before they ‘missed out’.

The psychology of any bubble market, whether we are talking about the stock market or the real estate market is known as ‘herd mentality’, where everyone follows the herd. This herd mentality is at the heart of any bubble and it has happened numerous times in the past including during the US stock market bubble of the late 1990′s, the Japanese real estate bubble of the 1980′s, and even as far back as the US railroad bubble of the 1870′s. The herd mentality had completely taken over the real estate market until recently.

The bubble continues to rise as long as there is a “greater fool” to buy at a higher price. As there are less and less “greater fools” available or willing to buy homes, the mania disappears. When the hysteria passes, the excessive inventory that was built during the boom time causes prices to plummet. This is true for all three of the historical bubbles mentioned above and many other historical examples. Also of importance to note is that when all three of these historical bubbles burst the US was thrown into recession.

With the changing in mindset related to the real estate market, investors and speculators are getting scared that they will be left holding real estate that will lose money. As a result, not only are they buying less real estate, but they are simultaneously selling their investment properties as well. This is producing huge numbers of homes available for sale on the market at the same time that record new home construction floods the market. These two increasing supply forces, the increasing supply of existing homes for sale coupled with the increasing supply of new homes for sale will further exacerbate the problem and drive all real estate values down.

A recent survey showed that 7 out of 10 people think the real estate bubble will burst before April 2007. This change in the market psychology from ‘must own real estate at any cost’ to a healthy concern that real estate is overpriced is causing the end of the real estate market boom.

The aftershock of the bubble bursting will be enormous and it will affect the global economy tremendously. Billionaire investor George Soros has said that in 2007 the US will be in recession and I agree with him. I think we will be in a recession because as the real estate bubble bursts, jobs will be lost, Americans will no longer be able to cash out money from their homes, and the entire economy will slow down dramatically thus leading to recession.

In conclusion, the three reasons the real estate bubble is bursting are higher interest rates; first-time buyers being priced out of the market; and the psychology about the real estate market is changing. The recently published eBook “How To Prosper In The Changing Real Estate Market. Protect Yourself From The Bubble Now!” discusses these items in more detail. For more information visit

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

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Market | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Short Sale Information

Kristin Duncan — Tue, 12 Jun 2012 20:59:41 +0000

Short Sale Information

When J. D. Tucker and his domestic partner split up, the distress went beyond heartache.
He became a single father with five adopted children, and only one income. It wasn’t enough to pay the mortgage on their south St. Louis home.
He bought it at the height of the housing boom. He owed $265,000 on a house now valued at only about $155,000.
He fell behind on the mortgage. “You start getting notices that they were going to foreclose on it,” he said.
Instead, Tucker took an option that’s gaining popularity among distressed homeowners here. He convinced the bank to accept a short sale: The home is sold for less than the amount of the debt, and the bank forgives all or nearly all the remainder.
“It’s generally the lesser of two evils,” says Kenny Reinhold, the Coldwell Banker Gundaker agent who handled the deal. Depending on the details, the owners’ credit may take a lesser hit than in foreclosure, and he escapes the debt.
Banks are becoming more amenable to short sales as the housing slump drags through its fifth year. The results show up in the statistics.
In 2008, just after the housing bubble burst, sales of foreclosed homes in St. Louis County outnumbered short sales by more than two to one. Now it’s roughly even.
There were 452 “pre-foreclosure” sales, the overwhelming majority being short sales, in St. Louis County in the first quarter. That’s a 33 percent increase from a year earlier, according to RealtyTrac, an online market for distressed property. Such sales were up 76 percent in St. Louis city, 25 percent in Jefferson County and 3 percent in St. Charles County, 56 percent in St. Clair.
It’s part of a national trend. “Lenders are approving more aggressively-priced short sales, which in turn is resulting in more successful short sale transactions,” said Brandon Moore, chief executive officer of RealtyTrac .
Short sales sales equal 11 percent of all sales in in St. Louis city, 10 percent in St. Louis County, 9 percent in St. Charles County and 12 percent in Jefferson County, 9 percent in St. Clair, 10 percent in Madison and 3 percent in Monroe.
Tucker couldn’t get his lender to lower his monthly payment. He considered sitting in the house until the bank foreclosed, a process that could take many months. But he wanted a way to completely escape his debt.
Creditors in Missouri and Illinois can pursue foreclosed debtors for “deficiencies,” the difference between the amount owed and the amount the bank collects from selling the house.
In practice, banks rarely try to collect since they know the debtors are broke, although they may come back later after people with high-income jobs, such as lawyers and doctors. Banks may also sell such bad debt to collection agencies.
Tucker is a hairdresser – not a high-income profession. But he was worried that the bank might some day sue him. “It could be years from now and the bank could say, ‘Now we want our money.’”
Tucker put out a for-sale sign last fall asking for $220,000 on his city home. “Everybody said it was too high for the neighborhood,” said Tucker, so they began steadily dropping it. “When we got into the $160,000s, I said I can’t believe this house isn’t being snapped up.”
Then came an offer for $155,000, and they took it to the bank.
His lender said it would take the offer if Tucker signed a promissory note for $30,000 – a little less than a third of the deficiency. After more bargaining, they cut it to $10,000 and Tucker agreed.
Tucker was unlucky. Most short sales don’t include such payments. Most, although not all, abolish the remaining debt, real estate agents say.
Last week, Tucker was packing up to move. “I’m happy with it. Ultimately I’m glad it’s going to be over,” said Tucker. “I never in a million years thought I’d be in the situation I’m in.”
His decision to short-sell, rather than accept foreclosure although it probably hastened the day when he can buy a house again. But it’s not clear whether it will rescue his credit score.
FICO, the credit scoring company, says someone with a good credit score, 720, will see it drop to 570 to 590 after a foreclosure. A short sale, with the deficiency forgiven, will drop it to 605 to 625. But a short sale without forgiveness — which is unusual — has the same effect as a foreclosure.
FICO says it generally takes debtors three to seven years for scores to recover after either a short sale or a foreclosure.
Fannie Mae, which backs half of all new home mortgages, makes borrowers wait two years after a short sale for another mortgage if they have a 20 percent down payment, and four years if they have a 10 percent down payment. Borrowers have to wait seven years after a foreclosure, although Fannie will cut it to three years with “extenuating circumstances.”
Persuading banks to take a short sale can be a slog. Banks have to be convinced that they’ll lose even more money in a foreclosure. “They want to see your pay stubs, bank statements. They want to see why you need a short sale,” said Tucker.
Job loss is a big persuader. Divorce may also sway the bank. Banks sometimes play along when employers transfer debtors to other cities.
Bankers say they prefer a short-sale to a foreclosure — if the buyer makes a reasonable offer. Banks avoid the legal, maintenance and marketing costs of taking and selling the house.
One of the reasons for rising short sales is that real estate agents are getting better at it, bankers say “The agents are getting smarter about working with the bank. They know what the bank will accept,” said Gary Douglass, CEO of Pulaski Bank, of the largest St. Louis-based mortgage lenders.
Homeowners are also more familiar with short sales, bankers say. They’re more likely to call a real estate agent rather than wait for the sheriff to show up with an order to get out
Banks differ widely in their attitudes toward short sales. “Bank of America is not getting easier. Wells Fargo went through a difficult period, but now they’re getting more friendly,” says Elizabeth Kayser, a Ballwin attorney who specializes in negotiating short sales with banks. Loans guaranteed by the FHA often cause problems, real estate agents say.
Just persuading the bank can take months, before the house goes on the market. Once an offer arrives, there’s usually another long wait ahead.
Three years ago, it took six to nine months to get banks to say yes or no to a short sale offer, said attorney Kayser. Now, the wait is down to two to five months, she said.
That requires a very patient buyer. “A lot of people are moving in with their parents just to get the deal,” says Joe LoPiccolo, a real estate agent who specializes in short sales.
At Pulaski Bank, Douglas said he’d be surprised if his bank took more than 30 days to decide on an offer.
Part of the delay in decisions stems from a massive processing jam that has vexed the industry since the housing bubble burst in 2007, leaving homeowners hoping for mortgage modifications hanging in limbo and delaying foreclosures, sometimes for a year or more after the homeowner stops paying.
“A lot of banks are not staffed up. You may have a fellow who has a stack of these and he gets to you when he gets to you,” says LoPiccolo.
Often the bank holding the mortgage isn’t the only decision maker. If there’s a second mortgage, its holder gets a veto. Second-note holders stand to be wiped out if the home goes to foreclosure. Still, they demand a payment to agree to a short sale.
Many loans carry private mortgage insurance, which protects the bank – not the homeowner – if a loan goes bad. That gives the insurance company a say. “That’s the real trump card,” says Kayser. “They can make or break a deal.”
Sometimes all of them send appraisers to look at the property. Then they ponder it.
In exchange for waiting, short-sale buyers get a cheap house. In Missouri, short sales go for 20 percent less than comparable homes, according to figures from RealtyTrac.
Foreclosed home sold by banks go for a 33 percent discount. That’s one reason that banks are leaning more toward short sales.
Matthew Branson and fiance Caitlin Beck, both 25, were willing to wait long to get a good bargain. “We weren’t even looking for a home at first,” said Branson. But while “messing around” on Google they spotted a two-bedroom ranch they like near Lemay. They paid a visit and made an offer through a Coldwell Banker agent.
It was a short sale, and the sellers were asking $79,900. They offered $70,000, and expected to be turned down. A little more than a month later, the lender accepted. They closed two weeks ago and moved in.
Branson thinks his wait was relatively short because the lender was a small St. Louis credit union, not a multi-state bank or national mortgage servicer, which dominate the industry. “It was fairly easy,” said Branson. “I’m very happy.”

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

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California Short Sale Information

Short Sale Information

California Short Sale Information

Kristin Duncan — Mon, 11 Jun 2012 18:47:59 +0000

California Short Sale Information

BILL NUMBER: SB 458 CHAPTERED
BILL TEXT

CHAPTER 82
FILED WITH SECRETARY OF STATE JULY 15, 2011
APPROVED BY GOVERNOR JULY 11, 2011
PASSED THE SENATE MAY 23, 2011
PASSED THE ASSEMBLY JULY 1, 2011
AMENDED IN SENATE MAY 16, 2011
AMENDED IN SENATE APRIL 4, 2011
AMENDED IN SENATE MARCH 21, 2011

INTRODUCED BY Senator Corbett
(Principal coauthors: Senators Correa and Vargas)
(Coauthors: Assembly Members Blumenfield and Skinner)

FEBRUARY 16, 2011

An act to amend Section 580e of the Code of Civil Procedure,
relating to mortgages, and declaring the urgency thereof, to take
effect immediately.

LEGISLATIVE COUNSEL’S DIGEST
SB 458, Corbett. Mortgages: deficiency judgments.
Existing law prohibits a deficiency judgment under a note secured
by a first deed of trust or first mortgage for a dwelling of not more
than 4 units in any case in which the trustor or mortgagor sells the
dwelling for less than the remaining amount of the indebtedness due
at the time of sale with the written consent of the holder of the
first deed of trust or first mortgage. Existing law provides that
written consent of the holder of the first deed of trust or first
mortgage to that sale shall obligate that holder to accept the sale
proceeds as full payment and to fully discharge the remaining amount
of the indebtedness on the first deed of trust or first mortgage.
Existing law specifies that those provisions would not limit the
ability of the holder of the first deed of trust or first mortgage to
seek damages and use existing rights and remedies against the
trustor or mortgagor or any 3rd party for fraud or waste if the
trustor or mortgagor commits either fraud with respect to the sale
of, or waste with respect to, the real property that secures that
deed of trust or mortgage. Existing law makes these provisions
inapplicable if the trustor or mortgagor is a corporation or
political subdivision of the state.
This bill would expand those provisions to prohibit a deficiency
judgment upon a note secured solely by a deed of trust or mortgage
for a dwelling of not more than 4 units in any case in which the
trustor or mortgagor sells the dwelling for a sale price less than
the remaining amount of the indebtedness outstanding at the time of
sale, in accordance with the written consent of the holder of the
deed of trust or mortgage if the title has been voluntarily
transferred to a buyer by grant deed or by other document that has
been recorded and the proceeds of the sale are tendered as agreed.
The bill would also provide that, in other circumstances, when the
note is not secured solely by a deed of trust or mortgage for a
dwelling of not more than 4 units, no judgment shall be rendered for
any deficiency upon a note secured by a deed of trust or mortgage for
a dwelling of not more than 4 units, if the trustor or mortgagor
sells the dwelling for a sale price less than the remaining amount of
the indebtedness, in accordance with the written consent of the
holder of the deed of trust or mortgage. The bill would provide,
following the sale, in accordance with the written consent, the
voluntary transfer of title to a buyer, as specified, and the tender
of the sale proceeds, the rights, remedies, and obligations of any
holder, beneficiary, mortgagee, trustor, mortgagor, obligor, obligee,
or guarantor of the note, deed of trust, or mortgage, and with
respect to any other property that secures the note, shall be treated
and determined as if the dwelling had been sold through foreclosure
under a power of sale, as specified. The bill would prohibit the
holder of a note from requiring the trustor, mortgagor, or maker of
the note to pay any additional compensation, aside from the proceeds
of the sale, in exchange for the written consent to the sale. The
bill would provide that these provisions are inapplicable if the
trustor or mortgagor is a corporation, limited liability company,
limited partnership, or political subdivision of the state. The
provisions would also be inapplicable to any deed of trust, mortgage,
or other lien given to secure the payment of bonds or other evidence
of indebtedness authorized, or permitted to be issued, by the
Commissioner of Corporations, or that is made by a public utility
subject to the Public Utilities Act. The bill would provide that any
purported waiver of these provisions shall be void and against public
policy.
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. Section 580e of the Code of Civil Procedure is amended
to read:
580e. (a) (1) No deficiency shall be owed or collected, and no
deficiency judgment shall be requested or rendered for any deficiency
upon a note secured solely by a deed of trust or mortgage for a
dwelling of not more than four units, in any case in which the
trustor or mortgagor sells the dwelling for a sale price less than
the remaining amount of the indebtedness outstanding at the time of
sale, in accordance with the written consent of the holder of the
deed of trust or mortgage, provided that both of the following have
occurred:
(A) Title has been voluntarily transferred to a buyer by grant
deed or by other document of conveyance that has been recorded in the
county where all or part of the real property is located.
(B) The proceeds of the sale have been tendered to the mortgagee,
beneficiary, or the agent of the mortgagee or beneficiary, in
accordance with the parties’ agreement.
(2) In circumstances not described in paragraph (1), when a note
is not secured solely by a deed of trust or mortgage for a dwelling
of not more than four units, no judgment shall be rendered for any
deficiency upon a note secured by a deed of trust or mortgage for a
dwelling of not more than four units, if the trustor or mortgagor
sells the dwelling for a sale price less than the remaining amount of
the indebtedness outstanding at the time of sale, in accordance with
the written consent of the holder of the deed of trust or mortgage.
Following the sale, in accordance with the holder’s written consent,
the voluntary transfer of title to a buyer by grant deed or by other
document of conveyance recorded in the county where all or part of
the real property is located, and the tender to the mortgagee,
beneficiary, or the agent of the mortgagee or beneficiary of the sale
proceeds, as agreed, the rights, remedies, and obligations of any
holder, beneficiary, mortgagee, trustor, mortgagor, obligor, obligee,
or guarantor of the note, deed of trust, or mortgage, and with
respect to any other property that secures the note, shall be treated
and determined as if the dwelling had been sold through foreclosure
under a power of sale contained in the deed of trust or mortgage for
a price equal to the sale proceeds received by the holder, in the
manner contemplated by Section 580d.
(b) A holder of a note shall not require the trustor, mortgagor,
or maker of the note to pay any additional compensation, aside from
the proceeds of the sale, in exchange for the written consent to the
sale.
(c) If the trustor or mortgagor commits either fraud with respect
to the sale of, or waste with respect to, the real property that
secures the deed of trust or mortgage, this section shall not limit
the ability of the holder of the deed of trust or mortgage to seek
damages and use existing rights and remedies against the trustor or
mortgagor or any third party for fraud or waste.
(d) (1) This section shall not apply if the trustor or mortgagor
is a corporation, limited liability company, limited partnership, or
political subdivision of the state.
(2) This section shall not apply to any deed of trust, mortgage,
or other lien given to secure the payment of bonds or other evidence
of indebtedness authorized, or permitted to be issued, by the
Commissioner of Corporations, or that is made by a public utility
subject to the Public Utilities Act (Part 1 (commencing with Section
201) of Division 1 of the Public Utilities Code).
(e) Any purported waiver of subdivision (a) or (b) shall be void
and against public policy.
SEC. 2. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to mitigate the impact of the ongoing foreclosure crisis
and to encourage the approval of short sales as an alternative to
foreclosure, it is necessary that this act take effect immediately.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

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California Short Sale Information

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California Short Sale Information

California Lending Rate | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Fri, 08 Jun 2012 16:33:02 +0000

California Lending Rate | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

As the employment situation continues to raise concerns, fixed rates fell even lower, slipping yet again to new record-lows, according to a survey from Freddie Mac released Thursday.

The 30-year fixed-rate mortgage averaged 3.67 percent (0.7 point) for the week ending June 7, falling from last week’s average of 3.75 percent. Last year at this time, the 30-year fixed was 4.49 percent.
The 15-year fixed rate declined even further below 3 percent to 2.94 percent (0.7 point), down from last week’s 2.97 percent. A year ago at this time, the 15-year was 3.68 percent.
“Fixed mortgage rates reached new record lows for the sixth consecutive week as long-term Treasury bond yields declined further following downwardly revised economic growth and job creation data,” said Frank Nothaft, VP and chief economist for Freddie Mac.
Nothaft cited recent reports showing gross domestic product rose only 1.9 percent in the first quarter as well as the disappointing 69,000 jobs added in May. In addition, the unemployment rate moved to 8.2 percent from 8.1 percent the month before in April.
The 5-year ARM remained unchanged from last week at 2.84 percent (0.7 point); a year ago, the 5-year ARM averaged 3.28 percent.
The 1-year ARM moved up to 2.79 percent (0.4 point), up from last week’s 2.75 percent. Last year, it averaged 2.95 percent.
Bankrate also released its survey on mortgage rates and reported record-low averages. The 30-year fixed slipped to 3.92 percent, down from last week when it averaged 3.94 percent. On the other hand, the 15-year fixed rose slightly to 3.16 percent from last week’s 3.15 percent.
The five-year fell to 2.99 percent from 3.01 percent last week.
Bankrate’s national survey uses data provided by the top 10 banks and thrifts in the top 10 markets.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

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California Lending Rate | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Mon, 04 Jun 2012 18:48:14 +0000

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

According to Radar Logic, the RPX Composite price, which tracks home prices in 25 major metropolitan areas, showed a 1.8 percent increase on a monthly basis, but decreased by 0.87 percent year-over-year in March.

With distressed homes remaining a significant portion of home sales transactions, Radar Logic said the significant discounts for distressed properties in relation to non-distressed means a further fall in prices.
According to RealtyTrac, homes in foreclosure or bank-owned accounted for 26 percent of all residential sales during the first quarter of 2012. In addition, the average sales price of homes in foreclosure or bank-owned in the same quarter was $161,214, which is a 27 percent discount compared to the average sales price of homes not in foreclosure or bank-owned.
Quinn W. Eddins, director of research and author of the report, wrote, “Large inventories of REO and homes in the foreclosure process still have to make their way into the ‘visible’ inventory of homes listed for sale, and as they do they will weigh on home prices.”
As for the temporary forces giving the market an added boost, the report named institutional investors as one of the driving factors. As rental prices increase, large investors are buying up discounted properties to convert them into rental units. This trend is driving up prices for distressed properties in certain metros where investor demand is high. Once prices for discounted properties rise to the point that investors won’t yield the return they are seeking, demand will decline again.
Another market influence Radar Logic highlighted is the mild winter weather that was seen in many parts of the U.S. This led to an earlier start for home shopping. As a result, Radar Logic said the price for March’s strength may be paid by a weaker buying season later.
Radar Logic expects national home prices to decline over the next 18 months, but said when it comes down to it, timing of the bottom is academic.
However, the analytics company said, “The important point is that national home prices are not going to increase in a sustained and meaningful manner anytime soon.”

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

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Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Wed, 30 May 2012 17:59:33 +0000

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Orange County CA home selling stays hot with fast buyers climbing over each other at market to find a good deal.

This buyer excitement creates lots of competition for foreclosures and popular properties priced at under $750k.

Orange County has only 14 days of average market time on foreclosure listings.
Only 206 foreclosure listings are now on the market – which is a 67 percent drop in past five months since start of this year.

Foreclosure listings are selling at full asking price – on average.
Less than 30 days of short sale listings inventory are now on the market – average market time.

Only 912 short sales are now listed – which is a 64 percent drop since start of this year 2012.
Short sellers don’t generally need to discount their listings from value to get buyer attention – short sales are selling for average price of about 97 percent of listing price.

For Orange County homes under $500k, average market time is 30 days.

For home $500k to $750k, average market time is 44 days.

For homes $750k to $1 million, average market time is 70 days.

Orange County CA for sale listing inventory continues to drop – with lots more buyers than sellers – expected to remain this way through the summer 2012.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

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Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Tue, 29 May 2012 17:49:48 +0000

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Short Sale Market Watch

Short sales and huge inventories of bank-owned real estate properties continue to put downward pressure on home prices, according to data released today by California-based analytics company CoreLogic. Fifty-seven of the 100 largest statistical areas based on population posted year-over-year declines in March.

Nationally, CoreLogic’s March Home Price Index report shows prices fell 33.7 percent in March 2012, from their peak in April 2006.

Home prices, including distressed sales, edged downward year-over-year, falling 0.6 percent from March 2011 to March 2012. Excluding distressed sales, home prices rose slightly, climbing 0.9 percent year-over-year.

Bank of America offers mortgage relief
Home prices sink to 2002 levels

In spite of the yearly decline, home prices rose month-over-month. Including short sales and real estate held by banks, prices increased 0.6 percent month-over-month — the first monthly rise since July 2011. Proving just how much of a drag short sales and REOs are on home values, prices have appreciated monthly for three consecutive months when distressed sales are excluded from the stats.

Even with all the bad news, the relatively flat monthly and yearly changes seem to indicate prices are beginning to steady.

“This spring the housing market is responding to an improving balance between real estate supply and demand which is causing stabilization in housing prices,” Mark Fleming, chief economist for CoreLogic, said in a press release. “Although this has been the case in each of the last two years, the difference this year is that stabilization is occurring without the support of tax credits and in spite of a declining share of REO sales.”

“While housing prices remain flat nationally, in many markets tighter inventories are beginning to lift home prices,” Anand Nallathambi, president and CEO of CoreLogic, said in a statement. “This is true in Phoenix, New York and Washington, for example, which all reflect higher home price values than a year ago. A continuation of this trend will be good for our industry across U.S. markets.”

Even with the burden of distressed sales, some states saw significant price appreciation. Wyoming, West Virginia, Arizona, North Dakota and Florida all saw yearly gains of 4 percent or more. Wyoming topped the list with an increase of 5.9 percent year-over-year.

Short sales and REOs contributed to yearly price declines in many states, but Delaware, Illinois, Alabama, Georgia and Nevada saw the largest depreciation. Home prices in Delaware fell 10.6 percent from last year, but all the states in the bottom five saw declines of five percent or more.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

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Kristin Duncan | Short Sale Negotiation | Transaction Coordinator