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.

Santa Clarita Realtor, Experienced Short Sales Specialist Jennifer & Gary Ricco Keller Williams VIP Properties

As a Santa Clarita Realtor specializing in Short Sales, I spend a large amount of time on the phone negotiating with asset managers for clients my wife and I represent. This particular client's job requires a security clearance and a delinquency would cause him to loose his clearance and his job. I recently escalated this file to a Level 2 supervisor at Fannie Mae because OneWest Bank formally know as IndyMac negotiated a deal that all parties agreed to, but ultimately was denied. This file was negotiated after a OWB loss mitigator supervisor verified the current mortgage status was not an issue, due to the fact that there was Imminent Default pending.

During this conversation the supervisor at Fannie Mae stated they recently changed the guidelines, according to their MBA Trust Document Fannie Mae will not consider a short sale on homeowners with current mortgages, homeowners must be delinquent.

Here is wording from the MBS Trust Document:

2. Default Reasonably Foreseeable (Imminent Default)

Servicing Guide, Part I, Section 202: Servicer's Basic Duties and Responsibilities;
Expansion of Forbearance Term Part III, Section 102.04: Repayment Plans; Section 804.04: Temporary Forbearance; Part VII, Section 302: Special Forbearance; Section 303: Repayment Plan; Section 502.02: Modifying Conventional Mortgages; Announcement 07-03R2: Reissuance of the Instructions for the Fannie Mae Single-Family MBS Master Trust Agreement; and Announcement 08-07:

Effective immediately, a servicer may begin loss mitigation efforts for any mortgage loan when a payment default is reasonably foreseeable (imminent default) rather than waiting for an actual payment default. Accordingly, a servicer may agree to one or more appropriate and permitted loss mitigation alternatives (e.g., forbearance, a combination of forbearance and a repayment plan, and an Early Workout (discussed in the following section)), if the servicer has determined that a payment default is reasonably foreseeable, and a concession to the borrower in the payment terms is advisable. In determining whether a payment default is reasonably foreseeable, the servicer must evaluate the borrower's financial condition as well as the condition of and circumstances affecting the property securing the mortgage loan. The servicer also must document the basis on which it makes a determination that a payment default is reasonably foreseeable. This new rule allowing earlier intervention applies to all MBS mortgage loans and all whole loans held in Fannie Mae's portfolio.

Preforeclosure sales, acceptance of deeds-in-lieu of foreclosure, and short payoffs (accepting a payoff for less than the amount owed), will not be permitted loss mitigation alternatives for use with borrowers whose loans are current but are determined to be in imminent default.
Following is a list of examples of the types of factors the servicer may consider when evaluating whether or not a payment default is reasonably foreseeable. Factors for consideration include, but are not limited to:
 information received from the borrower (for example, changes in employment and other income sources, or family medical status);
 the payment history of the borrower(s) (as reported by a credit bureau) on other indebtedness;
 the loan-to-value (LTV) ratio of the mortgage loan when it was originated;
 an estimate of the current LTV ratio;
 whether the monthly debt service under the mortgage loan has recently changed or will soon change;
 the credit score of the borrower(s); and
 the occurrence of a natural disaster (such as a tornado, hurricane, or flood), terrorist attack or other catastrophe caused by either nature or a person other than the borrower that: - the servicer reasonably believes adversely affects the value or habitability of a mortgaged property; or - the servicer reasonably believes adversely affects the borrower's ability to make further payments or payment in full on the mortgage loan.

A default is reasonably foreseeable when the servicer is notified or otherwise becomes aware of an event or factors (including those listed above) that is or are expected to cause the borrower to be in default in the near future, generally within 90 days.

As you can see this document is confusing. The attorney I have partnered with is reviewing this case for legal intervention.

From the above scenario you can see it's critical to hire a Realtor that is experienced & equipped to handle these types of transactions. If your facing foreclosure, we are Santa Clarita Realtos who specialize in foreclosure avoidance. Our Free consultations educate clients on the options available to keep their home, or sell their home through a short sale. When facing foreclosure your goal is to minimize your financial loss and limit the damage to your credit history.

Short Sale Realtor Specializing in Santa Clarita, Jennifer & Gary Ricco Keller Williams VIP Properties 661.290.3837

Here is the number one question I'm asked by struggling homeowners facing foreclosure, "Is it better to do a short sale or go through foreclosure?"

Unfortunately most Realtors don't have the education or training to answer this question. But to sum it up quickly, You need a Realtor that can analyze your financial situation, show you solutions to minimize your financial loss and limit the damage to your credit history. This will shorten the time it will take to recover from the hardship and repair you credit history.

Today's Realtor needs to understands when to pursue a Loan Modification by utilizing the provisions in President Obama's Making Homes Affordable, "Streamline Modification Program." This program was enhanced by S. 896: Helping Families Save Their Homes Act of 2009. http://www.govtrack.us/congress/billtext.xpd?bill=s111-896

It's critical for clients to have a Realtor who is educated enough to review the proposed Loan Modification should you qualify for one. The client has to be able to determine through a cost benefits analysis, if the Loan Modification is the best solution to minimize their financial loss. In most cases a Loan Modification only delays a foreclosure. Without Principle Reductions, most loan modifications have the client owing more then they own now for a property that is not worth that much. Here is the Mortgage Bankers Association, latest National Delinquency Survey. http://www.mortgagebankers.org/NewsandMedia/PressCenter/68008.htm

As a Realtor Specializing in Short Sales and Foreclosure Avoidance, I provide my clients with the necessary information to make informed decisions in this volatile real estate market. In today's market it's critical to have a Realtor that can explain the benefits of doing a short sale VS a Foreclosure. The best solution should minimize your financial loss and limit the damage to your credit history. I educated my clients on how The Mortgage Forgiveness Debt Relief Act and Debt Cancellation works and can benefit you. http://www.irs.gov/individuals/article/0,,id=179414,00.html

One of the most important reasons I tell clients to consider all their options, especially short sales when trying to avoid foreclosure is, "Foreclosure is reported on all future Loan Applications, which will effect your interest rate, short sales are not." It's important to understand and be careful not to commit fraud by trying to obtain another home loan while defaulting on a mortgage. Line F, under Declarations asks if you are delinquent or in default on any Federal debt or any loan, including mortgages.

It is more important than ever before for home owners and buyers to work with a Certified Distressed Property Expert, especially with all the rapid changes that are constantly taking place in the mortgage and housing markets. For information on the Certified Distressed Property Expert designation follow this link. http://www.cdpenow.com/

Jennifer & Gary Ricco of Keller Williams VIP Properties strive to provide you with up to date information on how to avoid foreclosure. It's critical to select a Realtor who has the training & experience when facing foreclosure. Our goal is to minimize your loss severity and limit the damage to your credit history. For a free confidential consultation contact Jennifer & Gary Ricco at 661.290.3837. We provide assistance to homeowners in the Santa Clarita Valley, San Fernando Valley and Ventura County. Please visit our website at http://www.riccosellshomes.com/ Our Short Sale FAQ link is very informative.

Santa Clarita Realtor Saves Two More Homeowners From Foreclosure. Jennifer & Gary Ricco Keller Williams VIP Properties.

Homeowners dealing with foreclosure are faced with difficult decisions. Foreclosure is quite possibly the most devastating financial and emotional process a homeowner or family can go through. The reality is, it's not going to be painless, however many foreclosures should never happen. Homeowners have options and now they have somewhere to turn for solutions.

As Santa Clarita Realtor's specializing in short sales, Jennifer and I are here to educate homeowners why it's important to avoid foreclosure. Our objective is to minimize an individuals financial loss, while limiting the damage to their credit history. This is why it's critical to select and utilize a Realtor who has successfully helped homeowners avoid foreclosure in this market. Through extensive education and ongoing experience, Jennifer & I have dedicated our time and effort to understanding the issues distressed homeowners are dealing with. We understand and utilize a full range of solutions, which are dictated by the clients financial situation.

On April 16, 2009 Jennifer and I successfully negotiated and closed a short sale, preventing a foreclosure, on 25338 Joyce Place, Stevenson Ranch. Here's a photo of the property

Caring, diligent, aggressive, thoughtful are just some of the character traits that describe the dynamic duo of Jennifer & Gary Ricco. The short sale process was a long process that had its share of frustration and angst; however, Jennifer & Gary never gave an inch to the lender, worked constantly with the lender and other parties to ensure we received the best possible terms for the sale of our property. In addition, they walked us through the process, kept us up to date with the latest information, and remained positive throughout the entire process.

Jennifer & Gary worked out a great deal for us that allowed us to sell our property as well move on with our life at a new residence that Jennifer & Gary were instrumental in helping us to secure. We could not have closed the sale of our home with such agreeable terms and moved on successfully to our new residence without the tremendous efforts & skills of both Jennifer & Gary.

We sincerely thank you and will recommend you both to our friends, family & peers.

Daren F.

On May 22, 2009 Jennifer and I successfully negotiated and closed a short sale, preventing a foreclosure, on 26764 Pamela Drive, Canyon Country. Here's a photo of the property.

Over the last 20 years, I have experienced the purchase and sale of several homes, and have dealt with a variety of Realtors. By far, my experience with Gary and Jennifer Ricco has been the most satisfying of all. From the moment we met Gary and Jennifer, I was extremely impressed with their professionalism.

The sale of this house was a very difficult decision for my family and me, due to the tragic circumstances surrounding this resolution. When I called Jennifer to arrange the first meeting, she was empathetic, showed great compassion for my situation, and was strongly equipped with all sorts of relevant information.

Through the entire process they explained every procedure, had great strategy in place, and went above and beyond to promote the sale of the house. Additionally, for hours and days at a time, Gary relentlessly negotiated with the mortgage company in order to get the lengthy and tedious process sorted out. Fortunately and thanks to all their great efforts the house was sold!

My family and I will forever be grateful for their hard work and determination. Because of this wonderful support; we can now look forward to owning another home in the not so distant future.

Jeanette M.

If your struggling to make your mortgage payments due to a Job loss, medical condition, divorce or an adjustable rate mortgage or have been unable to make your mortgage payment, time is running out. Take this time to talk with Jennifer & Gary Ricco, Santa Clarita Realtor's Certified as Distressed Property Experts, our consultations are free, educational and confidential. We will analyze your financial situation and provide you with solutions that minimize your financial loss and limit the damage to your credit history. Don't loose your home to foreclosure without a fight. To set up an appointment call 661.290.3837