Wednesday, December 30, 2009
Monday, December 28, 2009
Tuesday, December 22, 2009
Tuesday, December 15, 2009
Guess which National Real Estate Franchise came out as the "Most Recognizable Brand" for 2009? http://ping.fm/Pg194
Friday, December 11, 2009
Tuesday, December 8, 2009
Monday, December 7, 2009
Sold my second Evergreen listing in 3 weeks and for way over list price. Good way to start off the week. http://ping.fm/DtCRq
Friday, December 4, 2009
Tuesday, December 1, 2009
Monday, November 23, 2009
Wednesday, November 18, 2009
Wednesday, November 11, 2009
Tuesday, November 10, 2009
San Jose - 3 beds 2 baths end unit townhome in Evergreen. Don't miss out on this one. http://bit.ly/4m8fjn
Saturday, November 7, 2009
Friday, October 30, 2009
Thursday, October 29, 2009
Wednesday, October 28, 2009
Tuesday, October 27, 2009
Monday, October 26, 2009
Friday, October 23, 2009
Thursday, October 22, 2009
Wednesday, October 21, 2009
Fewer short sales are coming up short. http://ping.fm/4Z8XF shortsale foreclosure siliconvalley sanjose
Tuesday, October 20, 2009
Sunday, October 18, 2009
Friday, October 16, 2009
Thursday, October 15, 2009
Hooray to Jerry Brown, he will enforce this law finally and stop up-front charging of fees. http://ping.fm/Zr24F
San Jose Short Sale Agent is Wachovia preferred partner. http://bit.ly/31sK93 foreclosure shortsale foreclosureprevention
Wednesday, October 14, 2009
Foreclosure notices up but actual foreclosures are down. What's going on in Santa Clara County? http://ping.fm/nMe7X foreclosure shortsale
Toni Braxton battling foreclosure with BofA. Good luck! They are the worst.... http://bit.ly/1bBIcc foreclosure
Monday, October 12, 2009
Governator: pay everyone whether successful or not in stopping loan modification. http://ping.fm/HBfNP foreclosure foreclosureprevention
Sunday, October 11, 2009
Days from lender approval for a Whisman Station Gem. Don't miss out! http://bit.ly/M6Gn6 shortsale mountainview whismanstation
Friday, October 9, 2009
5% is the magical number for homebuyers to get off the fence. http://www.mercurynews.com/topstories/ci_13517215
Thursday, October 8, 2009
Blinded by Greed: a story of a short sale gone awry. http://ping.fm/eFO1Y short-sale-gone-awry foreclosure shortsale
Monday, October 5, 2009
The truth about mortgage servicers: are they helping those in need? http://ping.fm/EjDbE foreclosure foreclosureprevention
Friday, October 2, 2009
Thursday, October 1, 2009
What percentage of the MLS consists of distressed properties? http://ping.fm/DcjiV foreclosure shortsale
Tuesday, September 29, 2009
Congress funding efforts to battle mortgage fraud. http://bit.ly/2HOC6F foreclosure foreclosurerelief
Saturday, September 26, 2009
Friday, September 25, 2009
Some sobering statistic about mortgage delinquencies in Q2 2009. http://ping.fm/Qf7sw foreclosure foreclosureprevention
Existing home sales dip for first time in four months. Housing outlook not so rosy? http://ping.fm/a5mn9
Foreclosure mediation not working, as long as it is voluntary for banks.
http://ping.fm/lDv42 foreclosure
http://ping.fm/lDv42 foreclosure
30 years fixed hit below 5% and causes applications to surge.
http://www.inman.com/news/2009/09/23/low-rates-spur-refi-applications
http://www.inman.com/news/2009/09/23/low-rates-spur-refi-applications
Wednesday, September 23, 2009
California Bar Association releases names of attorneys under investigation for loan modification fraud. http://ping.fm/bVlsF
California Bar Association release names of attorneys investigated for loan modifcation fraud.
http://ping.fm/7LBqU foreclosure
http://ping.fm/7LBqU foreclosure
Fed slows $1.45 trillion program to aid housing market, keeps rates near zero
http://ping.fm/WUBUv foreclosure
http://ping.fm/WUBUv foreclosure
Tuesday, September 22, 2009
Short Sales spread across real estate market. http://ping.fm/kFfjO foreclosure shortsale foreclosurerelief stopforeclosure
How stressful are debt collection calls from mortgage companies?
http://ping.fm/hse27 foreclosure foreclosurerelief
http://ping.fm/hse27 foreclosure foreclosurerelief
True. In Silicon Valley: $500K properties=multi-offers; over $1M properties, sellers willing to negotiate. http://ping.fm/ZSaAR
True. In Silicon Valley: $500K properties=multi-offers; over $1M properties, sellers willing to negotiations. http://ping.fm/ZSaAR
RT @HousingWire: JPMorgan Sees Housing Recovery in Next 24 Months http://bit.ly/3tgtpQ foreclosure foreclosurerelief stopforeclosure
Monday, September 21, 2009
Asians hit worst by decline in housing market http://bit.ly/DRKqD foreclosure foreclosurerelief stopforeclosure
Saturday, September 19, 2009
HVCC: good intentions gone bad and killing real estate deals. http://ping.fm/Aem2Q foreclosure stopforeclosure foreclosurerelief
Foreclosure and its implications are affecting all segments of society.
http://ping.fm/NUIF8
#foreclosure stopforeclosure
http://ping.fm/NUIF8
#foreclosure stopforeclosure
Friday, September 4, 2009
Two San Jose men accused of loan modification fraud
Two San Jose men with an office operating out of Campbell has been accused of bilking over $2 Million dollars from 500 homeowners throughout California promising them principal reductions on their loans.
Please do not pay up front fees to anyone claiming to be able to do loan modifications on your behalf.
www.stevemungroup.com
$10,000 California Tax Credit prorgram ends
Click here for details.
The $10,000b California Tax Credit for new construction purchases is now officially over. Only the $8,000 Federal First Time Homebuyer Tax Credit is available. But the purchase of the property, or the escrow must be closed by November 31, 2009 to qualify.
Steve Mun, Silicon Valley Realtor
www.stevemungroup.com
The $10,000b California Tax Credit for new construction purchases is now officially over. Only the $8,000 Federal First Time Homebuyer Tax Credit is available. But the purchase of the property, or the escrow must be closed by November 31, 2009 to qualify.
Steve Mun, Silicon Valley Realtor
www.stevemungroup.com
Tuesday, September 1, 2009
Option ARM - the next mortgage meltdown
This is the ridiculous mortgage that people were offered during the crazy heydays of “anyone can get a mortgage” era of a few years back. Simply put, several payments options were given to the borrower, but the one that was selected most often was the low teaser rate option to pay less than the interest payments and have the deficiency tacked on the end mortgage; hence, the principal actually increases with time, rather than decrease! This was also referred to as the negative equity loan: your equity was actually decreasing rather than increasing. This was the Option Adjustable Rate Mortgage (ARM).
This was a pure gamble! You were gambling that the housing prices would continue to increase and you would be able to re-finance your way out of the negative equity situation some time in the future. Naturally, during 2006 or 2007, everyone was so drunk on the prospect of instant wealth, most of the borrowers who were presented this option took it, so they could buy a little more house than they would otherwise be able to afford. Unfortunately, the gamble did not pay off.
Throw 12% unemployment into the equation in California and see if this will not present itself as a serious crisis coming down the line. Every Certified Short Sale Agent worth his/her designation knows that the re-setting of these option ARMs will be the next wave of foreclosures.
Steve Mun, Silicon Valley Realtor
www.stevemungroup.com
Wednesday, August 26, 2009
How to lose your $8000 tax credit
As most working Real Estate Professional will tell you now a days, the rush is on to collect the government tax credit. Just as cash for clunkers had lit fires under the feet of potential car buyers, the same is true in the real estate industry.
First time home buyers are trying to collect their just rewards, and many know that the property must close escrow by November 30, 2009 to qualify. End of November seems like a long time off, but here is some food for thought because I don’t want you to lose out on technicalities.
Let’s consider that November 26 is Thanksgiving this year. Let’s admit it, most of us are procrastinators, so we will push the envelope and wait until the last moment to get in the door. Case in point, look at the lines at the post office at 11:30 PM on April 15 of each year.
The number of people trying to close escrow on November 30 will be overwhelming and it is also a Monday. But here is an insider tip in Real Estate: avoid closing escrow on Mondays and Friday because government employees at the County Recorders Office have higher rates of absenteeism on Mondays and Fridays, so the office will be under-staffed and the likelihood of your deed not recording on those particular days increase dramatically.
As Thanksgiving is on November 26 this year, we can pretty much eliminate all of that week, meaning November 23 through 27. But remember, we will have probably hundreds, if not thousands, of people trying to get their $8,000, so the County Recorders Office will be overwhelmed compared to normal number of closings, but given the current budget crisis in California, I doubt your County will hire extra staff or provide over time to handle the extra influx of closings. I could be wrong, but do you want to make an $8,000 bet on that? This is a government credit program, if you miss your filing deadline for whatever the reason, do you want to challenge the bureaucracy and hope you they will take your side?
To compensate for the overwhelming number of people wanting this credit (see Cash for Clunkers above) a safe move would be to close escrow probably at least a full week before Thanksgiving (that means November 19); I would even argue a week before that or November 12. But wait, we need to discount 30 days for escrow time, so we will need to find, negotiate (in probably multiple offer situation) and be in contract by October 12, 2009 to insure you get your $8,000 credit.
October 12 is not that far off……
Steve Mun, Silicon Valley Realtor
www.stevemungroup.com
Tuesday, August 18, 2009
Greed run amok: tax collectors are letting large banks foreclose on homeowners
As people still struggle with unemployment and the financial distress associated with such hardship, the prime beneficiaries of TARP (bank bailout program) continue to benefit and even thrive at the expense of tax payers who help fund the program to help them out of their difficult situation in the first place. As a Short Sale Agent in San Jose, I see how lending institutions deal with its customers on a daily basis, yet I am continually amazed at the means by which these gargantuan lending instituations have benefitted during their time of need, yet when the individual home owner are struggling, rather than help, they pounce right on them and go for the jugular…..
Here is a ridiculous illustration of that point. During this economic morass we are all enduring, city and county governments also suffer as a result of the individual home owner not being able to pay their property taxes. Because we are treading on unchartered territories and local government is in desperate need of cash flow, some of them are now selling their delinquent tax bills to third party companies for cash. [By the way, this is what these large banks are doing with their HELOC (home equity line of credit) and why they are now starting to play hard ball and refusing to sign off on short sales unless they are given the right to settle said deficiency after the closing. They write off their loss, turn around and sell the right to collect to a collection agency for additional cash and walk away to let the collection agency deal with collecting the deficiency. It’s a win-win for the banks because they are squeezing as much as they can out of the borrower at the first bite level and letting someone else get a second bite at the borrower in exchange for a fee.]
These tax lien purchasing companies are not affiliated with, nor have any interest in the local communities, so they are pushing the local homeowners quicker into foreclosure by adding additional penalties and obscene interest rates, which the homeowners cannot afford, then forcing them into foreclosure to collect their debt from the proceeds of the sale. All of this suffering and devastation over a very small percentage of the value of the property.
Think about this: it is not the lender that is owed the mortgage, nor even the lender which owns the line of credit, it is the third party entity that bought the rights to the delinquent tax bills that is forcing a homeowner into foreclosure over a few thousand dollars, which was inflated due to their horrendous interest and penalty charges…… What’s wrong with that picture??!!
The largest of these entities which buys and sells property tax liens, the one which is devastating Lucas County, Ohio and the one discussed in the New York Times article is called Plymouth Park Tax Services. Guess who is the parent company of this little known company? JP Morgan Chase – perhaps the biggest beneficiary of TARP!
Thank God, Santa Clara County is not selling its tax liens to these companies.
Wednesday, July 22, 2009
Tests to determine if you have toxic drywall in your home
I've been reading quite a bit about defective Chinese drywall that has the potential to be harmful not only to your person, but to your home as well. This post by a Tennessee Home Inspector named Scott Patterson provides a checklist of things to look out to determine whether you may have it in your home.
Steve Mun, Silicon Valley Realtorwww.stevemungroup.com
How to tell if you have Chinese Drywall in a home
After seeing in person several homes with Chinese drywall and seeing the Red Flags in those homes of what to look for I have compiled a simple list that will give you a good start in the search to see if your home has this problematic drywall in it:
- Use you sense of smell. If you detect a sulfur like odor, you might have it.
- Look at the soft reactive metals in your home. Copper and Silver seem to be the first to show signs of reacting to the corrosive off gassing of the drywall.
- Copper wiring that is turning dark is a tell tail sign. It turns almost black when it is exposed to the drywall off gassing.
- Most of us have pennies sitting in a jar, bowl or whatever. Take a look at that pocket change that has been sitting on the desk for a while. If the pennies on top are turning dark and the ones further down in the jar are not, then you might have it.
- Silver plated picture frames are another good test. If they are turning dark, you might have a problem.
- Silver jewelry is another good prospect to see if you might be at risk.
- Looking for the Made in China or Knauf/Tianjin marks on the back of the drywall in black ink. This is a guarantee that you have it! This can be done form the attic or even an air return chase.
Note: If you find Made in China or Kanuf on the back of the drywall in Blue ink, this drywall seems to be OK.
Any of the above situations or items along with the smell of sulfur in the home is about the best way to tell if your home is at risk of having Chinese drywall or drywall that has been mixed with fly ash. After talking with individuals who's homes have had this drywall, they all said that it started after they had been in the home for more than a few months and some took as long as four years. A common thread was that they all started to notice their silver jewelry was turning or tarnishing more than it ever did as soon as they moved into their new home.
At this time we have no sure method of testing an entire home to see if it has Chinese drywall in it. The only way to test via a lab is to take a sample (1" round core) every 4 feet in every wall and on every ceiling that has drywall. Why every 4'? The drywall sheets are in 4'x8' sheets so you must test every sheet! It is cost prohibited and very destructive to do this type of testing. Visual is the best method we have at this time for identifying a home with Chinese drywall. Be careful of the testing scams that have popped up over the past few months.
This information is provided by Scott Patterson as a service. It may be reproduced with permission as long as credit is given to the author and it is not changed.
Monday, July 20, 2009
Best Value end unit property in Whisman Station
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Friday, July 10, 2009
Surprise! Loan Modifications are not working
http://www.mercurynews.com/realestatenews/ci_12789161?source=email
I cannot say it is surprising that the banks are not providing enough loan modifications to stop the number of foreclosures that are looming in the not too distant future, with the continuation of high unemployment rates here in Silicon Valley and the rest of the country. The stated goals of the top executive at the lending institutions (of helping keep homeowners in their homes) and the negotiators who directly interface with the borrowers often seem at odds; I don’t know if it is this way by design or by circumstances.
As a short sale agent, I speak almost on a daily basis with loss mitigation negotiators who work in the same departments as the loan modification folks and let me tell you, they are overwhelmed and not in the frame of mind to think about your files to give them just consideration that each hardship warrants. If you don’t know how to deal with them, they will walk all over you and some have been known to flat out lie to the borrowers. Depending on the size of the lender and its loss mitigation department, each negotiator may be working from 200-500 files! Now how much consideration do you think a negotiator can give each file or consider the circumstances when you are file number 301 out of 400, unless they absolutely have to? Do you wonder why you hear horror stories about contacting loss mitigation departments and having to submit documents over and over or waiting on the phone all day to talk to someone?
Another thing to consider that the article does not mention is this: when the lenders do provide some sort of loan modification, it is often not enough to get the borrower out of their financial difficulty. You hear this quite often.
Let me give you a real life example of a past client. She had a combination of hardships that piled on top of each other rather quickly: relocation due to husband’s job, two unexpected medical complications that resulted in huge bills, and a pay cut to keep her job. All of these things and facing an upside down mortgage made her reach out to her lenders (both the same institution) for a loan modification. She needed to reduce her mortgage payments by about $1,400 to be able to continue making payments viable. The primary lender gave her a reduction in rate and a saving of about $700 per month, but added an additional $15,000 which was wrapped into the loan as “interests, costs and expenses” and re-amortized over 40 years. The HELOC (Home Equity Line of Credit) flatly denied any modification when the first thought she warranted a modification. After speaking with her CPA and lawyer, she contacted me about doing a short sale.
Where was the “modification” from the “Home Retention Group” when they simply wrapped the reduction cost back into the loan and offered to reduce an amount that was not consistent with what the borrower needed due to her pay cut? They knew from looking over the financial statement what the monthly deficiency was, yet offered to reduce it by less than what was short? Don’t they know, this is a recipe for pushing their borrowers into foreclosures; or are the negotiators so swamped with files, they simply don’t care. Either way, these types of loan modification are not working out for the borrowers. The lenders lose money when the borrower stops paying and go on the foreclosure track. Why not hire more people in their loss mitigation departments to reduce the work load and have the negotiators really look into people’s financial situation and give them the necessary help they need to keep them in their homes? That would truly be a win-win for the lender and the borrower and consistent with their executive’s stated goals to the congress and to the general public.
Steve Mun, Silicon Valley Realtor
www.stevemungroup.com
Tuesday, July 7, 2009
Desist and Refrain orders and/or accusations from California Department of Real Estate resulting from Loan Modifications
Here is the list of people whom the California Department of Real Estate has served Desist and Refrain orders and /or accusations resulting from a loan modification and/or foreclosure rescue transaction. Please read the preamble on the web page for an explanation.
I am just re-posting this list (which is public record) and make no comments or judgments about these individuals or their activities.
The consumer is advised to make their own informed decisions.
Steve Mun
www.stevemungroup.com
I am just re-posting this list (which is public record) and make no comments or judgments about these individuals or their activities.
The consumer is advised to make their own informed decisions.
Steve Mun
www.stevemungroup.com
Thursday, July 2, 2009
Obama's Refiance Program raises the limit on it LTV ratio!
Obama's Home Affordability Refinance Program (HARP) raises its maximum Loan-To-Value (LTV) limit from 105% to 125%.
This change finally makes better sense for the average homeowner here in California, who may be facing a distress situation or involved in short sale of their property. Being unable to qualify for a re-fiance if you were more than 105% underwater made no sense in the more expensive areas like California. With unemployment rate continuing to rise unabated, this is a bit of good news.
http://makinghomeaffordable.gov/pr_07012009.html
Steve Mun, Silicon Valley Realtor
www.stevemungroup.com
This change finally makes better sense for the average homeowner here in California, who may be facing a distress situation or involved in short sale of their property. Being unable to qualify for a re-fiance if you were more than 105% underwater made no sense in the more expensive areas like California. With unemployment rate continuing to rise unabated, this is a bit of good news.
http://makinghomeaffordable.gov/pr_07012009.html
Steve Mun, Silicon Valley Realtor
www.stevemungroup.com
Wednesday, July 1, 2009
Appraisers can be way off
“He is not a BPO agent, he is a professional appraiser” was what the Bank of America negotiator told me; the subtext obviously being that the latter is better at getting valuation than the former.
Well, regardless of whether he was a professional appraiser or a Realtor, the value was off by more than $70,000 by my valuation. I was shocked: $7,000 off maybe, but over $70,000? I’m no fool, I wasn’t going to challenge this as the appraiser was telling the lender that the house was worth far less than the offer I had in hand. This was going to be truly a win-win situation for my Silicon Valley Short Sale client.
But the valuation was too far off and I needed to understand why it was this way.
I asked that the negotiator provide me with the MLS listing numbers of the comps that the appraiser used to reach his conclusion. I had not seen any recently sold properties that would justify such a low appraisal value. When I’ve asked for comps before, some negotiators would provide them while others would not, so I asked in the nicest manner in which I am capable.
It turns out the appraiser was looking at properties that had one less bedroom, the interior space was off by about 400 square feet. How “professional” can this appraiser be if he was comparing apples with oranges? I cannot believe he was so far off, especially since he visited the property but it was not to my client’s detriment, so I did not raise a fuss.
However, this does raise a new flag for me and for my future practices. I typically did not ask for comps unless there was a reason to look into them, but from now on, I will ask for comps on all BPOs and appraisals and double check them for accuracy.
Steve Mun, Silicon Valley Realtor
www.stevemungroup.com
Tuesday, June 23, 2009
Watch out for these foreclosure scams!
Continuing with my previous topic relating to scams, here is a list of active scams that have been identified by the State of California as being perpetrated on consumers.
Please, if it sounds too good to be true, then it probably is.
http://www.yourhome.ca.gov/hope/predators_lurk.shtml
Contents from the website above have been re-printed below.
Predators Lurk: Avoiding Scams
When a lender files a foreclosure or schedules a home for public auction, the matter becomes public record – easily accessible at any county clerk or recorder's office. Scam artists often access these records and target people in financial distress. 90 Days of Hope seeks to educate homeowners about these risks to help them avoid being defrauded. This campaign will shine the spotlight on some common scams below. However, according to Department of Consumer Affairs director Carrie Lopez, the best advice for consumers to follow is, "if it sounds too good to be true, it is."
"The Bailout"
In this scam, a con will offer to buy the victim's home and promise the victim that they can live in the house for a fixed rent until they can buy back the home. The victim signs a document that turns over the title, but doesn't release them from responsibility of the mortgage (sometimes called a "quit claim deed"). Subsequently, the new "owner" collects the rent without paying the mortgage and lets the loan default. When the lender forecloses the victim is left with no home, a foreclosed mortgage, and bad credit.
"The Bait&Switch"
In this scam, often targeted at non-English speakers, someone shows up at a home claiming to be with the homeowner's loan company. The con asks the homeowner to sign documents so that they can keep their homes. They sometimes even promise to eliminate the debt owed.
The homeowner needs a way out and is overwhelmed by the sheer number of documents they are being asked to sign. One of those documents is a "grant deed" that passes the home's title to a third party – the scammer the scammer who then allows the loan to default. The victim is then evicted, left with no home, a foreclosed mortgage, and bad credit.
"Foreclosure for a Fee"
Opportunists who advertise to homeowners that they can offer "advice" on staying in the home until they are evicted make it seem as though walking away from your foreclosed home has few consequences while charging hefty fees for their products. Don't be fooled - foreclosure is never the first option and comes with adverse consequences to the homeowners and the state. It can take years for homeowners to repair their credit after a foreclosure.
Tips for Avoiding Scams
* Beware of anyone who shows up at your door or calls without you contacting them first. If you meet with someone in person, ask for business cards and contact information complete with the office address.
* Use the State of California databases to check for the licenses of state regulated entities. You can check license status of state regulated mortgage brokers, appraisers, lenders and real estate agents on line at www.dre.ca.gov/gen_lic_info
* Don't sign anything that has any blank spaces. Information could be added later that you didn't agree to.
* Always know exactly what you're signing and never sign a contract under pressure. Take your time to review the paperwork thoroughly -- ideally with a lawyer who only represents your interests.
* Never rely on a verbal agreement. Get all promises in writing and obtain copies of everything.
* Be wary of deals that sound too good to be true. Remember – if it sounds too good to be true, it probably is.
Steve Mun, Silicon Valley Realtor
www.stevemungroup.com
Monday, June 22, 2009
Foreclosure scams.
A substantial portion of my silicon valley short sale client base is Non-English speaking because I am bi-lingual. But as one navigates through the ‘ethnic” markets, one learns of the high number of abuses and fraud that is prevalent in these markets. Especially so, during economically difficult situations like now, when opportunities arise for those who want to take advantage of the less informed and more vulnerable segment of our communities.
It is ironic, as these homeowners facing difficulty come to the “ethnic” service providers because they fear being taken advantage of and feel their “own community” will treat them more fairly. And this is probably a true statement for the most part, but there is a segment in these communities that prey on the less informed and those who need help.
So here is one thing that I feel a need to inform these communities: if you received a NOTICE OF DEFAULT from your lender, DO NOT PAY UP-FRONT FEES TO ANY ‘FORECLOSURE SPECIALISTS” OR “FORECLOSURE CONSULTANTS who claim they can stop the foreclosure. And don’t be fooled by those who say they will provide a full refund if they cannot stop the foreclosure; it is too late, you already gave them your money, getting it back will be much harder.
Because a notice of default frightens homeowners, they are often in a panic mode and are led to believe that they have to pay someone to stop the foreclosure. This is often just the opportunity that scammers are looking for. Homeowners in default will miraculously receive phone calls or mails because these scammers can buy lists of people who received notices of default. Here is a list of what “foreclosure specialists” can and cannot do. Beginning next month, all “mortgage consultants” must be registered with the State Attorney General and must also put up a $100,000 bond.
For children and grand-children of Non-English speaking homeowners, if your loved ones are having difficulty paying their mortgage payments, share this information with them, just in case they get a call from someone speaking their language, willing to help them out of their foreclosure situation because the “consultant” heard they received a notice of default.
Steve Mun, Silicon Valley Realtor
Saturday, June 20, 2009
Indecision is a decision in a foreclosure situation.
We are all aware that times are tough and the economy is not re-bounding as quickly as everyone wants: unemployment is at 11.2% in Silicon Valley and more homeowners are falling behind in their mortgage payments. It is unfortunate, things look bleak and people fall into despair, all of this is naturally understandable.
But what I am seeing in my clients, and often times those whose primary language is not English, is something that can be avoided and benefit their situation in the long run.
What I am seeing in some of my silicon valley short sale clients is that that sense of despair is forcing them from making any decision. Not making a decision, unfortunately, is making a decision in a foreclosure situation. By not making a decision, you are essentially telling the lender that you are choosing not to get involved in the resolution of your non-payment: you are essentially giving them the middle finger. Obviously they do not take kindly to this type of behavior.
If you look at the Fannie Mae Underwriting Guideline for re-establishing credit (i.e. time it take before you can qualify for a home loan again), a foreclosure is worse than bankruptcy. After a foreclosure it takes 5 years before that individual is eligible to qualify for another home loan (seasoning); after a bankruptcy, the seasoning time is 4 years; after a silicon valley short sale, it is only 2 years.
Those folks who are shocked and overwhelmed and are just waiting and doing nothing (not paying their mortgage) are essentially making a decision to foreclose on themselves. Even if you feel the end result will be the same, do something to demonstrate to the lenders that you are doing your part to resolve the situation. Contact the lender directly or have someone do it on your behalf if there is a language barrier and try to get a loan modification. Remember, there is a concerted effort by the government and the lenders who took bailout money in trying to help borrowers if they qualify. Granted, not everyone may qualify, but you will not know, unless you make contact. If you qualify, then you can get some relief from your current payment structure; if you don’t qualify, then it opens up other alternative avenues (e.g. silicon valley short sale or bankruptcy) which you must now explore. Either way, you are moving forward and making informed decisions which will help you.
Steve Mun, Silicon Valley Realtor
www.stevemungroup.com
Wednesday, June 17, 2009
New Listing: Whisman Station Townhome
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