Market Update : trilogy

It Is Getting Harder to Buy a House

Liane Thomas — Tue, 08 Dec 2009 15:59:00 GMT

FHA to toughen rules for borrowers

The Federal Housing Administration (FHA) is proposing raising minimum credit scores for borrowers who receive FHA-backed mortgages, increasing down payment requirements, and limiting the amount of money sellers can provide toward closing costs. The proposed changes are part of an effort to shore up the agency's finances, which have been hit with rising defaults to its mortgage insurance program.

So what does this mean to you?

Historically, the FHA has played a critical role in propping up the housing market by insuring lenders against default after the mortgage market failed. Currently, the agency guarantees approximately 30 percent of all home loans and 20 percent of refinancings. In the past, the FHA has resisted raising down payments or insurance premiums, fearing it would be shutting out qualified borrowers and stunting the housing market's recovery.

The FHA is hoping that the proposed changes, including requiring that borrowers bring more cash to the closing table, will ensure that borrowers are less likely to default on their loans. Officials at FHA have yet to determine how much cash will be required.

Up-front cash can include down payments as well as other payments. Currently, FHA borrowers can put down as little as 3.5 percent. One lawmaker has introduced legislation that would require FHA borrowers to put down a minimum of 5 percent. The agency also currently allows sellers to provide up to 6 percent of the home's value toward closing costs or down payments. Secretary of Housing and Urban Development (HUD) Shaun Donovan has said he wants the maximum permissible level to be lowered to 3 percent, in line with industry norms.

The FHA has decided "for the time being" to raise its minimum credit score requirements for new borrowers. The new requirements have yet to be determined. Presently, borrowers with credit scores as low as 500 may qualify for an FHA loan.

So if you are thinking about buying a home in 12-18 months, and you plan on using an FHA loan, you might want to consider moving that plan up and buying sooner rather than later. It may cost you a lot more next year.

Brought to you by:

Liane Thomas, REALTOR®
The Thomas Group, Keller Williams Realty
1860 Compton Avenue
Corona, Ca 92881
Serving Corona, Norco, Riverside, and Surrounding Communities
951.454.3805
www.AllCoronaHomes.com

Behind on House Payments? Facing Foreclosure?

Liane Thomas — Tue, 08 Dec 2009 15:44:00 GMT

What should you do if you are getting those calls and letters from your loan company because you are late on your house payments? Believe me, you are not alone! Here are some ideas to help you figure out what to do next...

First, don't panic, but act now. Take control by starting to act and plan. The thought of losing your home is scary for anyone. However, your best chance of getting the best result for you comes if you start planning and preparing right away to increase the chances of the best possible outcome among the alternatives available to you.

Watch out for scams. There are companies out there who promise to "Stop Foreclosure" "Save My Home" or "Credit Repair" but without bankruptcy. While bankruptcy is not the only way to do this, you must be careful, and you should get qualified advice about all your choices. A Chapter 13 Bankruptcy is your legal right and it is proven effective, with the right planning and the right legal advice. There are government programs, but to use them you need to know all your rights.

1. Collect and start keeping records. Start by collecting together and keeping all your records about your home and your mortgage loan. This includes all your loan papers and legal papers, any appraisals, any notices from your mortgage lenders which you may have gotten and anything you get in the future. Start taking notes of all your dealings with the lender, and start keeping proof of all payments you make. You may lose important rights if you do not keep these papers!

2. Assess your budget and your priorities, to see how well you can afford to pay the mortgage or pay back any past due payments. Incredibly, many people, under pressure from bill collectors, will pay credit card bills, leaving them no money to pay the mortgage. If you want to keep your home, the mortgage payment is more important. You have choices, and making the right choices early will increase your chances that things end up the way you want.

A personal and household Budget is your key. Spend the time to honestly and carefully look at what income you have coming in, and what are your expenses. A carefully prepared budget tells you, and anyone from whom you seek advice, what you can afford to do, and is critical to deciding what options are in your best interest. You can make your own, or call or email me for a free one.

3. Find out what your home is worth. Many REALTORS(R) will give you a complimentary "Comparative Market Analysis". Tell them that you want as accurate an idea of your home's value now, in its current condition. This is another important part of the picture. Don't have a REALTOR(R)? Call or email me for assistance in finding an expert in your area.

4. Don't just spend the unpaid mortgage payment. If your lender is no longer accepting payments, consider putting the amount of each monthly payment aside in a savings account. Just because the lender will not accept your payment does not mean you should spend it, unless there is another pressing need (like paying for food, medical care, or other critical needs). If you do decide to save your home by bankruptcy or another means, having some of the back payments will be helpful.

5. Most importantly, seek experienced advice right away to find out your best options as soon as possible. Keep in mind that doing nothing will make things worse. An experienced professional adviser should review with you all your options and be able to tell you the pluses and minuses of each.

Keep an open mind and consider all your choices. Sell? Refinance? Do a deal with the lender to catch up? Bankruptcy? Not all of them will make sense, or even be possible for you. Again, it depends on what you can afford to do, and what will work for you in the long term.

Brought to you by:

Liane Thomas, REALTOR®
The Thomas Group, Keller Williams Realty
1860 Compton Avenue
Corona, Ca 92881
Serving Corona, Norco, Riverside, and Surrounding Communities
951.454.3805
www.AllCoronaHomes.com

One in Four Borrowers is Underwater on their Home

Liane Thomas — Sun, 29 Nov 2009 10:04:00 GMT

One in four borrowers is underwater
Despite recent indicators that the housing market is improving,a new report shows that one in four mortgage borrowers are underwater, meaning they owe more on their mortgage than their home currently is worth. According to First American CoreLogic, nearly 10.7 million households had negative equity in their
homes in the third quarter, accounting for about 23 percent of all U.S. homeowners. Most homeowners, however, still have equity, and nearly 24 million owner-occupied homes do not have a mortgage, according to the U.S. Census Bureau.

A study by credit-scoring company Experian shows that approximately 588,000 borrowers strategically defaulted on their mortgages last year, even though they could afford to pay--more than double the number in 2007. Homeowners with negative equity are more likely to strategically default if they live in a state where the bank cannot pursue their assets in court, according to a study by the Federal Reserve Bank of Richmond. California is
an example of a state with anti-deficiency laws protecting homeowners from personal liability under certain circumstances.

"Borrowers who are less than 20 percent underwater are likely to maintain their mortgage if their loan is modified and the payments reduced," said an official with Citigroup's mortgage unit. "Beyond 120 percent, the most effective modification is a complete loan restructuring, including a principal reduction."

So what does this mean to you? If you are underwater on your home, you are not alone. And you do have options....loan modification, short sale, deed in lieu of foreclosure, foreclosure, and bankruptcy are just a few. Not sure what to do first? Call for a free consultation. We will help you find the options available to you, no cost, no obligation, no pressure.

Brought to you by:

Liane Thomas, REALTOR®
The Thomas Group, Keller Williams Realty
1860 Compton Avenue
Corona, Ca 92881
Serving Corona, Norco, Riverside, and Surrounding Communities
951.454.3805
www.AllCoronaHomes.com

What If..You Stop Making House Payments???

Liane Thomas — Sat, 21 Nov 2009 04:07:00 GMT

We all talk about what-ifs.

One big what-if many homeowners have today has to do with making house payments.

Many homeowners are underwater, meaning they owe more than the home is worth at today's depressed prices.

Some homeowners certainly are wondering why they're sending in the payment on, say, a $450,000 mortgage, when the house would sell today for only $250,000.

Your options: Keep paying, try to change your loan's terms, or sell and get the heck out!

But some people wonder, what if I just stop paying the mortgage? It may be a tempting idea, but it quickly leads to trouble.

Here's what could happen if you don't pay the mortgage:

• Report to the credit bureau — If your payment does not arrive, your lender or servicer will report this late payment to the credit bureau by the first day of the next month. This can happen in as little as two weeks from due date and put a negative mark on your credit report.

• Your credit score drops — The late payment report whacks your credit rating. Your credit score starts to drop, by up to 200 points, if this is your only late or missed payment.

• Cards are closed, rates rise — In the next 30 days, you can expect your other creditors to take note of the late payment and to take action. They can raise your interest rates, shut off your credit card entirely, or lower your credit limit. You also could face other changes in your financial life, because auto insurance, student loans and other forms of credit are pegged to your credit score.

• Tightening of credit lowers your score — Credit scores feed on themselves. If your credit card limits are lowered and you are carrying a balance, you are then using more of your available credit, something known as your utilization rate. When that goes up, it lowers your score some more. The negative mark stays on your credit report for seven years. But the impact on your credit score lessens over time. The biggest impact is for the first two years.

• Lender response — The phone will start ringing. Your lender will try to contact you to persuade you to go into a loan modification of some kind. But after 90 days, you cannot just start making payments again. The lender may send your payment back, if you send it this late and have not been in contact.

• What happens next — After four months of not paying your mortgage, you will likely be served with a foreclosure notice. If you don't respond within 20 days, then the lender, in the following 60 days, will ask a court to issue a judgment against you.

A county sale will be arranged 50 to 120 days after the judgment. Then, 120 days after the sale, the sheriff will be at the door. Ten days after that, you'll be thrown out of your home.

This schedule is a general one, however. If you hire a lawyer and fight the foreclosure, you may be able to delay the sale for many months or avoid it altogether.

If you are in this position, and not sure what to do, please call 951 454-3805 for a free, no obligation, consultation. We will explore the "What If's" with you, no pressure, and no cost.

Liane Thomas, REALTOR®
The Thomas Group, Keller Williams Realty
1860 Compton Avenue
Corona, Ca 92881
Serving Corona, Norco, Riverside, and Surrounding Communities
951.454.3805
www.AllCoronaHomes.com

June 2009 California Housing Market Fast Facts

Liane Thomas — Sun, 02 Aug 2009 13:23:00 GMT

Calif. median home price - June 09: $274,740 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 09: Santa Barbara So. Coast $850,000 (Source: C.A.R.)

Calif. lowest median home price by C.A.R. region June 09: High Desert $108,600 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index - First Quarter 2009: 69 percent (Source: C.A.R.)

Mortgage rates - week ending 7/23/09 30-yr. fixed: 5.2% Fees/points: 0.7% 15-yr. fixed: 4.68% Fees/points: 0.7% 1-yr. adjustable: 4.77% Fees/points: 0.6% (Source: Freddie Mac)

Information Provided by:

Liane Thomas, REALTOR(R)
The Thomas Group, Keller Williams Realty, CA DRE#01704162
Serving Corona, Norco, Riverside, and the surrounding communities
www.AllCoronaHomes.com
951.454.3805

Existing Home Sales Up June 2009!

Liane Thomas — Tue, 28 Jul 2009 14:59:00 GMT

According to the National Association of Realtors (NAR), existing home sales in June rose by 3.6% to an annual rate of 4.89 million, the highest since last October. Lawrence Yun, NAR chief economist, said: "The increase in existing-home sales occurred in all major regions of the country." Analysts say that this signals moderation in housing slump.

"Market-clearing price levels are resulting from the foreclosure wave," said John Ryding, chief economist at RDQ Economics. "This will be a protracted bottom, rather than anything that will show a quick recovery." The national median existing-home price for all housing types was $181,800 in June, which is 15.4% below June 2008, according to the NAR. Analysts expect to see depressed home prices for many more months to come. Tax incentives and drop in interest rates have contributed to the rise in home resales. But concerns about unemployment are keeping many prospective homeowners in the sidelines.

Information provided by:

Liane Thomas, REALTOR(R) dre ca 01704162
Thomas Group, Keller Williams Realty
Serving Corona, Riverside, Norco, and surrounding communities
www.AllCoronaHomes.com
951.454.3805

New Home Sales Up June 2009

Liane Thomas — Tue, 28 Jul 2009 13:48:00 GMT

Sales of newly built, single-family homes rose 11% in June, 2009 to a seasonally adjusted annual rate of 384,000 units, according to numbers released by the U.S. Commerce Department. Coming on the heels of an upwardly revised number for May, the gain marks a third consecutive month of improved sales activity.

“This is good news that indicates the nation’s housing market may be in the process of turning the corner,” said Joe Robson, chairman of the National Association of Home Builders (NAHB) and a home builder from Tulsa, Okla. “That said, the key to moving us out of recession is to get Americans back to work. Congress and the Administration should know that housing can be a significant generator of good jobs. We need to make housing a priority in the recovery process, otherwise we could continue to bounce along a bottom for some time.”

“The big gain in home sales last month was reflected in three out of four regions and helped shrink the inventory of new homes for sale to its lowest level in years,” said NAHB Chief Economist David Crowe. “Even so, the pace of home sales in June 2009 was still more than 21 percent off the pace of sales in the same month last year, so we still have quite a way to go. The concern now is that complicating factors-particularly job losses, appraisal issues that are torpedoing more than a quarter of new-home sales, and the impending expiration of the first-time buyer tax credit-threaten to stifle the positive momentum.”

The number of newly built homes on the market declined for a 26th consecutive month in June, falling 4.1% to 281,000 units. This marks a relatively thin 8.8-month supply at the current sales pace.

New-home sales rose by double-digits in the Northeast (29.2%), Midwest (43.1%), and West (22.6%) in June. Meanwhile, sales activity declined 5.3% in the South, which is the country’s largest housing market.

Information provided by:

Liane Thomas, REALTOR(R) dre ca 01704162
Thomas Group, Keller Williams Realty
Serving Corona, Riverside, Norco, and surrounding communities
www.AllCoronaHomes.com
951.454.3805

Avoid Foreclosure

Liane Thomas — Sun, 26 Jul 2009 18:40:00 GMT

Home owners who are facing foreclosure often dread dealing with the facts that got them to that place. If they think back to when they first bought that home, losing their home was probably the furthest thing from their mind. Few home owners actually plan to go into foreclosure.

Reasons For Pending Foreclosure

Apart from those who knowingly participate in mortgage fraud, most homeowners are faced with a sudden and usually unexpected change in their circumstances that force them to stop making timely mortgage payments. Here are a few of those reasons:

Job Loss
Sudden illness or medical emergency
Death in the family
Divorce or loss of second income
Excessive debt obligations
Job demotion or promotion denials
Inability to pay an adjustable interest rate that increases
Unexpected major home maintenance expense

Ways to Avoid Foreclosure

The best way to avoid foreclosure is to prevent the filing of a Notice of Default. Lenders do not want to foreclose but will file a Notice of Default to protect their interests, if necessary. If you know you are unlikely to meet your mortgage obligation, the first thing you should do is call your lender.

Don't put it off, be embarrassed or ignore letters from your lender because those responses will make the situation worse, not better. Depending on your particular situation and hardship circumstances, here are some options your lender might propose to you:

Time to make up your payments.
Lenders might agree to wait before taking legal action against you and let you work out a repayment plan that is affordable for you. This is called forbearance.
Forgive a payment.
If you can agree on a way that you will be current after missing a payment or two (without the means to pay it back), the lender might give you a break and waive your obligation. This is called debt forgiveness, and it rarely happens.
Spread out the missed payments over a longer term.
For example, if your payment is, say, $1,200 a month, the lender might let you add $100 a month to each payment for a year until you are caught up.
Change the terms of your loan.
If your mortgage is an adjustable loan, the lender might freeze the interest rate before it increases or change the interest rate to a more manageable rate for you. A lender might also extend the amortization period.
Add the back payments to your loan balance.
If you have sufficient equity and meet the lender's lending guidelines, the lender might increase your loan balance to include the back payments and re-amortize the loan.
Make a separate loan to you.
Certain government loans contain provisions that let borrowers who meet specific criteria apply for another loan, which will pay back the missed payments.

Ways to Stop Foreclosure

When the lender files a Notice of Default, your options are limited. That is why it is better for you to call your lender before falling behind on your payments, because lenders are often reluctant to work out repayment schedules after foreclosure proceedings have been commenced.

You will be given a certain time period to bring the payments current, pay the costs of filing the foreclosure and stop the foreclosure. This is called reinstatement of your loan. If you cannot make up the missed payments and the lender will not work with you, here are a few other options to stop foreclosure:

Sell Your Home.
Interview at least 3 successful real estate agents who are well versed in foreclosure prevention. Get a realistic opinion of your homes market value and how long it will take to sell it. You might be tempted to hire a discount broker, but many sellers feel they need the exposure and marketing that full service brokers offer. Compare both to determine which best meets your needs and time frame.
Consider a Short Sale.
If your home is worth less than the amount you owe, you might be a candidate for a short sale. A short sale does affect your credit, but it's not as bad as a foreclosure. A good agent will negotiate with your lender to find out if the lender will cooperate on a short sale. Many times, the lender will cover the costs associated with a short sale.
Sign a Deed-in-Lieu of Foreclosure
This is called deeding the home back to the lender. The homeowner give the lender a properly prepared and notarized deed, and the lender forgives the mortgage, effectively canceling the foreclosure action.

If you are in a situation that could leave you facing a forclosure, please know you have options. Call for a free consultation.

Liane Thomas, REALTOR®, CDPE©

The Thomas Group, Keller Williams Realty

Serving Corona, Norco, Riverside, and surrounding communities

(951) 454-3805

www.AllCoronaHomes.com

www.FreeNorcoHomeSearch.com

www.FreeRiversideHomeSearch.com

Ca DRE #01704162

Save $3500 Off A New Car. Cash for Clunkers!

Liane Thomas — Tue, 21 Jul 2009 01:29:00 GMT

If you have an old car and you're thinking about upgrading to a new vehicle, you'll definitely want to look into the Government's new Consumer Assistance to Recycle and Save (CARS) Act of 2009...as you might be able to get some cash for that clunker!
The CARS Act-also knows as "Cash for Clunkers" was passed by Congress late last month and signed into law by President Obama. The program is designed to get older, less fuel-efficient vehicles off the road by providing buyers with a trade-in voucher when they upgrade to a new, fuel-efficient vehicle. The program offers different voucher incentives depending on the type of vehicle you trade in, as well as the gas mileage of the new vehicle you drive off in. The voucher is good on either domestic or imported vehicles, and it can be applied towards either the purchase or the lease of a new vehicle.

Trading in a Car for a New Car?
If you're considering upgrading your car, here's a quick look at what you can expect:
IF you trade in an older car that gets 18 mpg or less...
AND you purchase or lease a new car that gets at least 22 mpg...
You can qualify for a $3,500 voucher that is applied to the price of the new car.
In addition, you can get an extra $1,000-for a total of $4,500-if you upgrade to a new car that gets 10 mpg better than the old car that you're trading in.

Want to Upgrade an SUV, Truck or Minivan?
If you're upgrading an SUV, truck or minivan, the numbers work out a little different:
IF you trade in an older SUV, pickup truck or minivan that gets 18 mpg or less...
AND you purchase or lease a new SUV, pickup or minivan that gets at least 2 mpg better gas mileage than the vehicle you're trading in...
You can qualify for a $3,500 voucher that is applied to the price of the new SUV, truck or minivan.
In addition, the voucher increases to $4,500 if the miles per gallon of the new truck or SUV is at least 5 mpg higher than the old one you're trading in.

What's the Catch?
There are a number of provisions that must be met in order to qualify for the incentive. First and foremost, the vehicle that you're trading in must have been built in the last 25 years-meaning, it's a 1984 model or newer.
Second, it must only get 18 mpg or worse. Remember, the program is aimed at getting low mileage vehicles off the road. So, if your car gets 25 mpg, it's not the type of car this program is targeting.
Additionally, the vehicle must be drivable, must be registered, and must have been insured for at least the past year. Essentially, you have to actually trade in a vehicle that you've been using, as opposed to a dead car that's been stored on blocks for a couple of years while you tried to figure out what to do with it.

Should You Take Advantage of CARS?
Basically, this program is designed to replace older, less fuel-efficient vehicles with new fuel efficient ones. If your vehicle is fuel efficient, you probably don't even qualify.
Additionally, if your vehicle has a trade-in value that's greater than $3,500 or $4,500, the program doesn't make much sense for you. That's because the program requires your trade-in to be destroyed, since one goal of the program is to get older, gas-guzzlers off the road for good. That means, the dealership probably won't add-in much additional trade-in value. In fact, you'll probably only see a modest bump equal to the approximate scrap value of your vehicle. So, if you can get, say, $5,000 or more for your vehicle as a trade-in without the program, you're probably better off going that route.

Don't Wait Too Long
The CARS program is supposed to run until November 1, 2009 or until the money Congress set aside for the program run out. So if you're considering this program, don't wait too long - contact a dealer about your trade in and which new vehicle you'd like to purchase or lease.
The final rules and details of the program are expected to be released at the end of July. In the meantime, you may want to visit the government's official CARS website at http://www.cars.gov for more information, including a FAQ page-and to see if your vehicle qualifies for the program.

Brought to you by:

Liane Thomas, REALTOR®, CDPE©

The Thomas Group, Keller Williams Realty

Serving Corona, Norco, Riverside, and surrounding communities

(951) 454-3805

www.AllCoronaHomes.com

www.FreeNorcoHomeSearch.com

www.FreeRiversideHomeSearch.com
Ca DRE #01704162

May 2009 California Housing Fast Facts

Liane Thomas — Thu, 16 Jul 2009 14:24:00 GMT

Calif. median home price - May 09: $267,570 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region May 09: Santa
Barbara So. Coast
$875,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region May 09: High
Desert
$106,210 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter
2009: 69 percent (Source: C.A.R.)
Mortgage rates - week ending 7/9/09 30-yr. fixed: 5.20%
Fees/points: 0.7% 15-yr. fixed: 4.69% Fees/points: 0.7% 1-yr.
adjustable: 4.82% Fees/points: 0.6% (Source: Freddie Mac)

brought to you by:

Liane Thomas, REALTOR(R), The Thomas Group, Keller Williams Realty, dre 01704162
Serving Corona, Norco, Riverside, and the surrounding communities
www.AllCoronaHomes.com
951.454.3805

CNN Says Housing Market may be Stabilizing!

Liane Thomas — Sun, 05 Jul 2009 21:20:00 GMT

CNN is searching for a bottom in the housing market

With consumer confidence rising in May to its highest level in eight months, housing starts increasing more than 17 percent in May compared with the previous month, and sales of existing homes climbing 2.9 percent in April nationwide, it appears that the housing market may be stabilizing.

So what does that mean to you?

Although sales of existing, single-family homes rose 35.2 percent in May in California, compared with a year ago, the median price declined 30.4 percent during that same year. Some industry analysts predict that as specialized adjustable-rate mortgages, known as option ARMS and Alt-A mortgages, reset over the next 18 to 24 months, prices could decline further before stabilizing.

"We are seeing strong buying activity, particularly in those boom and bust markets, where prices have declined significantly. Buyers are coming in and fighting over properties -- there is multiple bidding in California and Florida," says Lawrence Yun, chief economist with the NATIONAL ASSOCIATION OF REALTORS(R).

Sales of existing homes are soaring as many investors and first-time buyers purchase distressed properties. Yun estimates that about 50 percent of current sales involve distressed properties, and he expects the trend to continue as foreclosures rise in the months ahead.

Although some economists predict home prices will continue to decline in the coming months, California'ss median home price rose for the third consecutive month in May, posting the largest monthly increase on record for the month of May.

Some buyers are trying to time the bottom of the market and purchase once it appears that prices are consistently and steadily rising. Many housing forecasters advise against this approach as buyers should not view their homes solely as investment opportunities. Historically, the average annual rate of return on a home lived in for five years or more is nearly 12 percent, based on data C.A.R. has collected over the last 40 years.

If you are thinking of selling your home, now is an excellent time with low inventory and the seasonal spike we get this time of year. Even if you are underwater on your home, like so many families, we'd like to help you find a solution. Call for a free consultation. Thanks!

Liane Thomas, REALTOR(R), CDPE
The Thomas Group, Keller Williams Realty
Serving Corona, Norco, Riverside, and Surrounding Communities
www.AllCoronaHomes.com
951 454-3805

California Running Out of $10,000 Tax Credits for New Homes

Liane Thomas — Sat, 20 Jun 2009 09:56:00 GMT

First-time home buyers wanting to take advantage of the state's $10,000 tax credit may have less time than originally expected. California set aside $100 million to help home buyers purchase newly built homes, hoping to jump start the residential-construction market. According to state officials, the tactic has worked well and is helping to entice home buyers into the market. However, there only is approximately 20 percent of the program?s funding remaining.

The program launched in March, and as of June 3 nearly $24 million in tax credit certificates already had been issued, according to the state's Franchise Tax Board, leaving nearly $76 million in credit available. Many applications still are in the pipeline awaiting approval. If all of the submitted applications are approved, only $17.5 million would remain in the fund.

The California state legislature is considering adding another $200 million to the program. However, securing approval may be difficult due to the state's estimated $24 billion budget deficit. A bill to extend the program already has won Assembly approval and now is awaiting activity in the state Senate.

So what does this mean to you? If you are considering buying a new home, you need to move fast! If you are a first time home buyer you, and you have completed the home buying process before 12/1/09, you could cash in on a much as $18,000 in tax credits. Need help finding you home? Call or email us! We offer a free service to get you in touch with a professional in your area who will help you find you home AND secure your tax credit!

Thanks!

Information provided by:
Liane Thomas, REALTOR(R), CDPE
The Thomas Group, Keller Williams Realty
Serving Corona, Riverside, Norco, and surrounding communities
www.AllCoronaHomes.com
www.FreeRiversideHomeSearch.com
951.454.3805

New 90 Day Foreclosure Rule in California

Liane Thomas — Thu, 18 Jun 2009 00:02:00 GMT

Recent news headlines have caused confusion by mischaracterizing the new California Foreclosure Prevention Act as a 90-day moratorium and incorrectly stating that the lender must modify delinquent loans before it begins foreclosure. In reality, the foreclosure process for certain owner-occupied residential first trust deeds has been extended by 90 days, effective June 15, but an exemption is available for lenders with comprehensive loan
modification programs as defined by the Act.

Under pre-existing law, a lender must wait three months after filing a notice of default before it can file a notice of sale. The new California Foreclosure Prevention Act extending that time frame by another 90 days may not have much practical impact.

So what does that mean to you? If you find yourself unable to make your monthly payment, first, call your loan servicer. The phone number should be on your payment coupons. Ask first for the Home Retention or Loan Modification Department. Then honestly explain your situation. Ask them to help you keep your home. Your loan servicer will not charge you for this service.

If you cannot get your loan modified, please call me. As a Certified Distressed Propery Expert, I can help you figure out what to do next. Foreclosure is not your only option.

Thanks,

Liane Thomas, REALTOR(R), e-PRO, CDPE
The Thomas Group, Keller Williams Realty
Serving Corona, Norco, Riverside and surrounding communities
www.AllCoronaHomes.com
www.FreeRiversideHomeSearch.com
951.454.3805

Local REALTOR(R) Earns Prestigious Designation to Help Homeowners In Danger of Foreclosure

Liane Thomas — Tue, 09 Jun 2009 19:03:00 GMT

Liane Thomas of The Thomas Group, Keller Williams Realty in Corona Ca. has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.

Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.

In the Corona area, thousands of homes are in danger of foreclosing. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.

“This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales,” said REALTOR(R) Liane Thomas. “It is so rewarding to be able to help sellers save their homes from foreclosure.”

Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as Liane Thomas with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.

The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.

“Our goal is to educate as many people as possible so we can help as many homeowners as possible,” Charfen said.

For more information about CDPE designation, please call 1-800-482-0335. To reach Liane Thomas, please call 951 454-3805.

Liane Thomas, REALTOR(R)
The Thomas Group, Keller Williams Realty
Serving Corona, Norco, Riverside, and surrounding communities
951.454.3805
www.AllCoronaHomes.com
www.FreeRiversideHomeSearch.com

Banks Accepting More Short Sales!

Liane Thomas — Fri, 05 Jun 2009 15:36:00 GMT

Did you know the Obama administration, through the Making Home Affordable program, is giving lenders and loan providers an incentive of up to $1,000 for each completed short sale? This is in addition to $1,000 to share the cost of paying any second-mortgage lenders to release their claim on the property. These incentives offered by the government, coupled with lenders wanting to reduce bad loans, are likely to increase the number of short sale transactions. "Without a doubt, lenders are more willing to work through short sales," said Andre L. Mitchell, the executive vice president of the Lynx Mortgage Bank. "In this marketplace if the lenders can negotiate in any way to get rid of a bad loan, they're going to do it." Banks may lose less money in short sales than in foreclosures, where banks may carry the house for a considerable period of time before selling it. Analysts believe short sales are often the best option, even for homeowners thinking about a new loan to save the home. "It's gotten to the point where people understand that sometimes you have to start over," says Mitchell. "A loan modification might help you in the short term, but sometimes what people need to do is get out completely."

Personally, we are seeing short sales getting approved faster, and the process is becoming easier than it has been in the past. We have been helping homeowners who are underwater since 2007. If you are a homeowner who is underwater, behind in payments, or facing a foreclosure, we'd love to talk with you. There is no obligation, and no cost to you. Thanks!

Brought to you by:
Liane Thomas, REALTOR(R)
Thomas Realty Group, Inc.
951.454.3805
www.AllCoronaHomes.com
www.FreeRiversideHomeSearch.com