Home Sales Warm Up, However The cold chill of Falling Home Prices Awaits Many Americans This Winter.

For the past 2 years I have been following the number of mortgage defaults and developing a business to help struggling homeowners. Here is a post I wrote back in April showing the foreclosure trends. http://activerain.com/blogsview/1013521/-national-foreclosure-default-numbers-continue-to-rise-fouth-quarter-2008 The folowing will show you we are not out of the woods yet.


Home sales jumped 7.2% between June and July, the largest increase in over a decade with the fastest pace in nearly two years. However, according to the National Association of Realtors(NAR). Prices are down 15% compared to last year.
The banks along with the government moratorium on foreclosures have fostered a sellers market to slow and stop the devaluation of home prices. A combination of distressed properties, seasonal trends, low interest rates, and tax credits for first-time buyers is working its magic. Several issues have me worried that instead of an end to this housing nightmare, we are about to be hit by another wave of foreclosure.


With a large percentage of sales focused on foreclosures, short-sales, or other forced transactions rooted in financial distress, our current buying trends are by no means normal. It's no wonder, with the Mortgage Bankers Association (MBA) reporting that more than one in eight mortgage holders are in some stage of delinquency or foreclosure. http://www.mortgagebankers.org/NewsandMedia/PressCenter/68008.htm


In July foreclosures jumped 7% compared to June. With subprime borrowers unable to refinance loans and prime borrowers unable to pay their bills because of job loss we will see default numbers continue to rise. According to the MBA survey, 58% of new foreclosure starts originated in the well-to-do prime loan category, up from 44% last year. Meanwhile, subprime borrowers were responsible for only 33% of foreclosures, down from 49% last year. As foreclosures affect a larger and larger swath of the population, it will only add to the number of properties on the market and prices will naturally gravitate lower.


The major problem were facing now is the wave of loan resets in 2010 and 2011. As you can see in the chart below, a large number of prime, Alt-A, and Option ARM borrowers will be facing a higher payment, due to a mortgage rate reset, just as the housing market digests the fallout from the subprime problem of 2007 and 2008. Notice the reset activity for 2009. Should the economy actually start recovering, the Federal Reserve will have no choice but to raise interest rates during this period.

We also have an inventory issue. Despite a spike in sales, the inventory of existing homes for sale actually increased 7.3% to 4.1 million last month nationally. Here in Santa Clarita, California our inventory is at historically low levels, however with the foreclosure moratorium being lifted and homeowners attempting to short sell we could see a wave of properties hit the market by late fall.

Whats alarming to me is what Zillow found in it's latest survey. Zillow found that a full 81% of homeowners believe their homes value wont fall in value over the next six months. Adding to the perception that people are losing touch with reality, only 60% believed the value of their home had fallen over the last year; when in reality 83% of all homes actually lost value during that time.

My wife Jennifer and I are here to help homeowners who are dealing with foreclosure. After serving in the Military and Law Enforcement we pride ourselves in doing the right thing for those in need. Now is not the time to gamble with your financial future, you need a Certified Pre Foreclosure Specialist who understands this market and has the experience to get the job done. Call for your free consultation. 661-290-3837 We offer & extend our expertise from Santa Clarita to Oxnard through Thousand Oaks and the San Fernando Valley.

Santa Clarita's PreForeclosure Specialists Save Another Homeowner From Foreclosure! Jennifer & Gary Ricco Keller Williams VIP Properties.

When your a homeowner facing foreclosure its difficult to manage your emotions during this process. What's important to focus on may be clouded by your attachment to the property. An experienced Realtor will be comforting throughout the process. Homeowners trying to avoid foreclosure need a Realtor who is trained to handle and negotiate these difficult transactions.

Our Certified Distressed Property Expert designation and Pre-Foreclosure Specialist Certification ensures homeowners that we have the training and experience required to handle these transactions. Here's another example of how we help Santa Clarita homeowners avoid foreclosure.

We were contacted by these clients, in Feb 2009 for a consultation. After careful analysis of their situation and their communication with a CPA and Tax advisor, these clients decided a short sale would be the best solution to minimize their financial loss and limit the damage to their credit history. We listed the property at FMV ($455,000) and represented a committed buyer to purchase the property. We educated everyone involved in this transaction on the time frames and pitfalls associated with a short sale transaction. Jennifer and I showed the buyers what FMV was in this neighborhood and they agreed to make a reasonable offer ($425,000), which we believed the lenders would accept.

Jennifer and I negotiated with BofA, who held both the 1st and 2nd liens. BofA accepted the $425,000 offer and gave the buyers a 3% credit towards closing costs. After negotiations were settled, we had a delay due to the buyers bank (Chase) not funding on time. This entire process lasted alittle over 5 months and recently closed, with the homeowner avoiding foreclosure.

Those not educated on this process will say this process is impossible or takes way to long. This is the reality of the current Real Estate Market. As a Realtor in today's market it's critical to have the training, experience and communication skills to manage and facilitate transactions for seller's and buyer's. We all just need to do our part while President Obama's administration and the banks streamline the short sale process.

If your facing foreclosure, we can help you understand your Pre-Foreclosure options. Jennifer and I provide Free Consultations! Don't gamble with your financial future, you need a trusted representative with a proven record. We extend our services to homeowners in the Santa Clarita Valley, San Fernando Valley and Ventura County. For recorded information on Pre-Foreclosure Options Call 1(800)805-2409 ext 2002

If your a buyer in this market you need a Realtor who has received specific training in distressed markets, has experience in representing buyers in today's market and the ability to negotiate on you behalf to get the job done. If your buying in today's market, Jennifer and I would like the opportunity to earn your business. Our buyer consultations are educational.

Specializing In Santa Clarita's Pre-Foreclosure Real Estate Market, Jennifer & Gary Ricco CDPE, PSC

Has your lender filed a Notice Of Default? Don't wait till you receive a Notice Of Trustee Sale, learn your Pre-Foreclosure options from a Certified Pre-foreclosure Specialist now!

Have you missed 3 or more mortgage payments due to a reduction in pay, large medical bills, loss of job or your ARM Loan resetting to a higher payment? Has all the information you've heard in the media confused you? Are you stressed out because your lender is not responding to your loan modification request or your lender is only offering you a Forebearance which increases your principle balance? Do you want honest answers about how to avoid foreclosure?

Your not alone, millions of homeowners all across America are facing foreclosure. These homeowners, like you will be making tough decisions throughout the next couple years.

Don't be mislead, as a homeowner you only have 9 options to choose from when trying to avoid foreclosure. A true financial hardship and missed mortgage payments in most cases is required to qualify for President Obama's Making Homes Affordable Program. Financial hardships limit the use of these 9 options. Here are the only options available for homeowners to utilize to avoid foreclosure.

Nine options when facing Foreclosure
1. Do Nothing - If a homeowner does nothing, they will lose their home at foreclosure auction. Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also disclose this damaging information. Not the best option.

2. Payoff/Refinance - Completely paying off the entire loan amount plus any default amount and fees. Usually this is accomplished through a refinance of the debt. New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default. With this option, there should be equity in the home. This option may change your non-recourse loan to a recourse loan, enabling the lender to pursue a deficiency judgment. http://banking.about.com/od/loans/a/recourseloan.htm

3. Reinstatement - Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.

4. Loan Modification - Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level. To qualify, you must prove to the lender you have fixed the problem that caused the late payment.

5. Forbearance - Lender may be able to arrange a repayment plan based on the homeowner's financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements.

6. Partial Claim - A loan from the lender for a 2nd loan to include back payments, costs and fees.

7. Deed in Lieu of Foreclosure - Give the property back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained, all mortgage payment and taxes must be current. Most loan applications ask if this has ever happened.

8. Bankruptcy - This option can liquidate debt and/or allow more time. I can refer you to a qualified bankruptcy attorney.
--Chapter 7 (Liquidation) To completely settle personal debt.
--Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years.
--Chapter 11 (Business Reorganization) A business debt solution.

9. Sale - If the property has equity (money left over after all loans and monetary encumbrances are paid). The homeowner may sell the home without lender approval through a conventional home sale. In this case, the homeowner will get cash from the sale. On the other hand, a Short Sale, also known as a pre-foreclosure sale, can be negotiated with your lender by your Real Estate Professional if what is owed is MORE than the property's value.

Jennifer & Gary Ricco of Keller Williams VIP Properties have sought out the best training in the Real Estate Industry to provide homeowners with honest answeres about avoiding foreclosure. Both my wife and I have earned the Certified Distressed Property Expert designation http://www.cdpenow.com/ and the Pre-Foreclosure Specialists Certification http://www.partnerfirst.org/ .

Don't gamble with your financial future, Jennifer and Gary Ricco are Realtors who are specializing in this Pre-Foreclosure Real Estate Market. Whats critical to understand about avoiding foreclosure is which option will minimize your financial loss and limit the damage to your credit history. Avoiding Foreclosure will have negative ramifications, Jennifer and I have to verify your financial hardship in order to see what programs you qualify for and what options apply to you. Whether you agree with your lender to do a forebearance or choose a short sale their are ramifications that homeowners have to understand and consider when utilizing these options.

If your about to miss payments or are in default, contact Jennifer and Gary Ricco to set up a consultation, its free, educational and will provide solutions for the difficult decisions you have to make. We extend our services to the Santa Clarita Valley, San Fernando Valley and Ventura County.

FOR 24 HOUR RECORDED INFORMATION ON PRE-FORECLOSURE OPTIONS CALL 1(800)805-2409 ext 2002

Santa Clarita Realtor Receives Pre-Foreclosure Specialist Certification (PSC)

In today's market foreclosure does more then hurt your credit, it affects your ability to buy a home in the future. There are many programs out there to help struggling homeowners who are falling behind on their mortgage payments. During these tough economic times hardworking people everywhere are having to make difficult decisions regarding their financial future. In order to make sure that you and your family are protected from foreclosure you need a Realtor who has been properly trained to specialize in Pre-Foreclosure alternatives.

As Realtors who specialize in helping homeowners avoid foreclosure in Santa Clarita, Jennifer and I go out of our way to seek out continuing education from the brightest minds in the industry. Thanks to the incredible Frank Crandall (Santa Clarita KW Team Leader) and Rod Gordy (Sr VP Fidelity National Title) we were introduced to PartnerFirst, a Nationwide Certified Short Sale Agent Network, who offer's the PSC designation. Jennifer and I finished their intensive two day Pre-Foreclosure Specialist Certification course. This course enhanced our negotiation skills and provided us with a perspective from the lenders point of view, when it comes to loss mitigation. For more information about how PartnerFirst PSC Realtors can help homeowners please follow this link. http://www.partnerfirst.org/

Here's a look at the management team and the individuals who were instrumental in putting the curriculum together for the PSC designation.

Management Team

Mark Comer, Co-Founder and President, PartnerFirst. With more than 19 years of experience achieving high levels of leadership success within the mortgage and real estate industries, Mark co-founded PartnerFirst with a vision to connect homeowners, vendors, mortgage servicers and real estate brokers together through the PartnerFirst Real Estate Network. Mark is a graduate of the University of Southern California with an emphasis in Real Estate Development and Finance.

Michael Leet, Co-Founder, Executive Vice president and Chief Operating Officer, PartnerFirst. With more than 19 years of experience achieving high levels of success within the mortgage industry, Michael is in charge of all financial and operations management for PartnerFirst and its sister companies National Mortgage Consumer Counseling, and United American Funding. Michael is a graduate of the University of Southern California in Business with an emphasis in Real Estate.

Son Nguyen, Co-Founder, Senior Vice President, Program Director of the Homeowner Outreach Assistance Program and Minority Outreach Initiative, PartnerFirst. With more than 12 years of achieving high levels of leadership success within the real estate, title and escrow industries, Son is in charge of developing the Homeowner Outreach Program (HOA) focusing on the Minority Outreach Relations initiative (MOR). A proud U.S. Navy veteran, Son is a graduate of the University of Florida with a degree in Public Relations and Masters in Organizational Management.

Priscilla Carlone, Vice President of Default Services Technology, PartnerFirst. With more than 27 years of experience in non-performing mortgages servicing, Priscilla is considered an expert in loan loss mitigation technology and servicing practices. Her award-winning career with Fannie Mae for the past 20 years has yielded multiple loss mitigation initiatives including integral system technology and innovative servicing processes and efficiencies.

Trainer

Jacob Swodeck, Director Of Education, PartnerFirst. Jacob is an active agent who has been in the pre-foreclosure trenches for over 10 years. He began his real estate career as a manager of one of the largest short sale processing centers on the west coast. With a training that runs deep with experience and volume in short sales, Jacob has acquired the knowledge necessary to be considered one of the top short sale experts in his respective field. Between himself and his past business partner, they estimate to have closed nearly 1,000 short sales together including the 1990's when Jacob began. Jacob has also trained thousands of real estate professionals to "recession proof" their careers in his full day short sale mastery university seminars nationwide.

If you are falling behind on your mortgage payments you have many Pre-Foreclosure options to choose from: Contact a Pre-Foreclosure Specialist today to discuss which option is best for you. Don't wait till it's to late, let us show you how to minimize your financial loss and limit the damage to your credit history.

I encourage homeowners to contact me, who are facing foreclosure with IndyMac Loans. I have helped several homeowners with IndyMac Loans, in doing so I have developed a great working relationship with several Loss Mitiators and the VP of Loss Mitigation. I have also developed similar relationships with BofA, Wells Fargo and several other lenders.