Silicon Valley Realtor's Blog

2010-03-09T15:48:00.001-08:00

Blog - Chairman of the House Financial Services Committee calls Second Lien Write-downs. http://ping.fm/uou6Y foreclosure

2010-03-06T17:45:00.001-08:00

Blog - 12.5% unemployment in California for January 2010. http://bit.ly/bvlf4w SanJose foreclosure

2010-01-13T10:45:00.001-08:00

Let's help the earthquake victims of Haiti. http://ping.fm/KzveI

2010-01-06T23:49:00.001-08:00

Return of the California $10K tax credit for first time home buyers? http://ping.fm/Ri8Ag

2010-01-05T00:17:00.001-08:00

Stopping a Foreclosure does not happen without a plan. http://bit.ly/8zBQmi

2009-12-30T14:24:00.001-08:00

Taking matters into your own hands. http://ping.fm/LykeB

2009-12-28T22:56:00.001-08:00

Santa Clara County Market Conditions: Nov 09 vs. Nov 08 http://ping.fm/83ZAS

2009-12-22T18:29:00.001-08:00

Did the Tax Credit Extension help increase home sales? http://bit.ly/5Rvn5F

2009-12-15T22:09:00.001-08:00

Guess which National Real Estate Franchise came out as the "Most Recognizable Brand" for 2009? http://ping.fm/Pg194

2009-12-11T22:46:00.001-08:00

Ask for performance data when hiring a listing agent. http://ping.fm/dd7pX

2009-12-08T13:41:00.001-08:00

The Truth about Mortgage Modifications. http://ping.fm/putfE

2009-12-07T15:43:00.001-08:00

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

2009-12-04T23:31:00.001-08:00

Q3 2009 Mortgage Delinquency Data http://ping.fm/qQK1G

2009-12-01T23:49:00.001-08:00

San Jose - HAFA (Home Affordable Foreclosure Alternatives) http://ping.fm/BhAzR

2009-11-23T20:41:00.001-08:00

Got 5 offers on one of my listings today. All you need is 1 good offer; the rest is just gravy.

2009-11-18T23:36:00.001-08:00

Foreclosure: a family saga http://ping.fm/WEPUh

2009-11-11T23:02:00.001-08:00

What percentage of properties in the MLS in Santa Clara County are distressed? http://ping.fm/bNLwb

2009-11-10T22:14:00.001-08:00

San Jose - 3 beds 2 baths end unit townhome in Evergreen. Don't miss out on this one. http://bit.ly/4m8fjn

2009-11-07T00:07:00.001-08:00

Second 3/2 townhome in Evergreen area coming soon.
http://ping.fm/Ufl6W?ref=mf

2009-10-30T13:06:00.001-07:00

Silicon Valley 7th safest area. http://ping.fm/tM2me

2009-10-29T19:46:00.001-07:00

Chinese dry-walls differ chemically. http://ping.fm/CK6XG

2009-10-28T21:41:00.001-07:00

$8000 tax credit extended until April. http://ping.fm/dUxmX

2009-10-27T17:31:00.001-07:00

Turnaround in home values: Is 3 months a trend?
http://ping.fm/yNib6

2009-10-26T17:38:00.001-07:00

Yow! Got 21 offers for my little condo in Rivermark! The most ever in my career. Lower price point properties are moving like hot cakes.

2009-10-26T11:37:00.001-07:00

Taking offers today until 5 pm on my Rivermark Plaza condo. Don't lose out on this opportunity, won't know when the next unit will come on market.

2009-10-23T11:48:00.001-07:00

A drywall between China and the U.S. http://bit.ly/8wvzW. You would know if you had it.

2009-10-22T20:55:00.001-07:00

Compassion Deficit http://ping.fm/PBAR5 foreclosure foreclosureprevention

2009-10-21T12:52:00.001-07:00

Fewer short sales are coming up short. http://ping.fm/4Z8XF shortsale foreclosure siliconvalley sanjose

2009-10-20T18:06:00.001-07:00

Some interesting data I pulled about Cal. Housing Market. http://ping.fm/BtOdt

2009-10-20T16:37:00.001-07:00

RT @GuyKawasaki: Ten least stressful jobs http://om.ly/POQj

2009-10-20T16:12:00.001-07:00

White House thinks perhaps no go on homebuyer tax credit. http://ping.fm/hRvRJ

2009-10-20T15:22:00.001-07:00

Nicholas Cage's real estate nvestment no so good.....http://ping.fm/cvhfZ

2009-10-18T22:11:00.001-07:00

Foreclosures contribuiting to increase in homeless shelters. http://ping.fm/nj2Jl

2009-10-16T20:02:00.001-07:00

Stinky what??!! http://ping.fm/lz4IH

2009-10-15T21:49:00.001-07:00

Hooray to Jerry Brown, he will enforce this law finally and stop up-front charging of fees. http://ping.fm/Zr24F

2009-10-15T12:05:00.001-07:00

San Jose Short Sale Agent is Wachovia preferred partner. http://bit.ly/31sK93 foreclosure shortsale foreclosureprevention

2009-10-14T23:43:00.001-07:00

I think he can use one more instrument.....

2009-10-14T23:12:00.001-07:00

Foreclosure notices up but actual foreclosures are down. What's going on in Santa Clara County? http://ping.fm/nMe7X foreclosure shortsale

2009-10-14T11:35:00.001-07:00

Toni Braxton battling foreclosure with BofA. Good luck! They are the worst.... http://bit.ly/1bBIcc foreclosure

2009-10-12T23:10:00.001-07:00

Governator: pay everyone whether successful or not in stopping loan modification. http://ping.fm/HBfNP foreclosure foreclosureprevention

2009-10-11T12:54:00.001-07:00

Days from lender approval for a Whisman Station Gem. Don't miss out! http://bit.ly/M6Gn6 shortsale mountainview whismanstation

2009-10-09T14:12:00.001-07:00

Some good news. Nor Cal. economy may be growing faster than So Cal. http://ping.fm/hcg4O economy

2009-10-09T09:35:00.001-07:00

5% is the magical number for homebuyers to get off the fence. http://www.mercurynews.com/topstories/ci_13517215

2009-10-09T09:33:00.001-07:00

Congratulations to Mr. Prez. http://ping.fm/fBrmw

2009-10-08T21:36:00.001-07:00

Blinded by Greed: a story of a short sale gone awry. http://ping.fm/eFO1Y short-sale-gone-awry foreclosure shortsale

2009-10-05T20:01:00.001-07:00

The truth about mortgage servicers: are they helping those in need? http://ping.fm/EjDbE foreclosure foreclosureprevention

2009-10-02T00:01:00.001-07:00

Where are real estate deals? Check here. http://bit.ly/30se3

2009-10-01T23:55:00.001-07:00

No more Liar's Loans - too little, too late. http://ping.fm/8KVll foreclosure foreclosureprevention

2009-10-01T12:11:00.001-07:00

30 year fixed falls below 5%!
http://www.mercurynews.com/breaking-news/ci_13462755?nclick_check=1

2009-10-01T00:01:00.001-07:00

What percentage of the MLS consists of distressed properties? http://ping.fm/DcjiV foreclosure shortsale

2009-09-29T15:28:00.001-07:00

Congress funding efforts to battle mortgage fraud. http://bit.ly/2HOC6F foreclosure foreclosurerelief

2009-09-26T22:59:00.001-07:00

Amazing stop-motion animation. Worth watching it all the way through. http://ping.fm/XduVT

2009-09-25T16:36:00.001-07:00

Some sobering statistic about mortgage delinquencies in Q2 2009. http://ping.fm/Qf7sw foreclosure foreclosureprevention

2009-09-25T09:33:00.001-07:00

Existing home sales dip for first time in four months. Housing outlook not so rosy? http://ping.fm/a5mn9

2009-09-25T09:31:00.001-07:00

Foreclosure mediation not working, as long as it is voluntary for banks.
http://ping.fm/lDv42 foreclosure

2009-09-25T09:26:00.001-07:00

30 years fixed hit below 5% and causes applications to surge.
http://www.inman.com/news/2009/09/23/low-rates-spur-refi-applications

2009-09-23T22:26:00.001-07:00

California Bar Association releases names of attorneys under investigation for loan modification fraud. http://ping.fm/bVlsF

2009-09-23T21:45:00.001-07:00

California Bar Association release names of attorneys investigated for loan modifcation fraud.
http://ping.fm/7LBqU foreclosure

2009-09-23T11:55:00.001-07:00

'Equity share' loans of up to $75K offered to help Silicon Valley homebuyers
http://ping.fm/khsC7

2009-09-23T11:53:00.001-07:00

Fed slows $1.45 trillion program to aid housing market, keeps rates near zero
http://ping.fm/WUBUv foreclosure

2009-09-22T21:27:00.001-07:00

Short Sales spread across real estate market. http://ping.fm/kFfjO foreclosure shortsale foreclosurerelief stopforeclosure

2009-09-22T21:17:00.001-07:00

Europe's Real-Estate Firms Rebound http://bit.ly/156HF6

2009-09-22T21:13:00.001-07:00

Condo developers say sales of downtown San Jose high-rises are picking up.
http://ping.fm/aOLFe

2009-09-22T20:54:00.001-07:00

Plastic bag ban in San Jose by 2011
http://ping.fm/BtFXm

2009-09-22T20:42:00.001-07:00

How stressful are debt collection calls from mortgage companies?
http://ping.fm/hse27 foreclosure foreclosurerelief

2009-09-22T20:15:00.001-07:00

Santa Clara County Market Conditions August 2009
http://ping.fm/jXXi9

2009-09-22T15:56:00.001-07:00

True. In Silicon Valley: $500K properties=multi-offers; over $1M properties, sellers willing to negotiate. http://ping.fm/ZSaAR

2009-09-22T15:55:00.001-07:00

True. In Silicon Valley: $500K properties=multi-offers; over $1M properties, sellers willing to negotiations. http://ping.fm/ZSaAR

2009-09-22T10:35:00.001-07:00

Please connect with me on facebook. http://bit.ly/vQ9Jq

2009-09-22T10:27:00.001-07:00

U.S. home prices rise 0.3 percent in July http://ping.fm/pjxxV

2009-09-22T10:26:00.001-07:00

RT @HousingWire: JPMorgan Sees Housing Recovery in Next 24 Months http://bit.ly/3tgtpQ foreclosure foreclosurerelief stopforeclosure

2009-09-21T18:07:00.001-07:00

Asians hit worst by decline in housing market http://bit.ly/DRKqD foreclosure foreclosurerelief stopforeclosure

2009-09-21T14:39:00.001-07:00

$30 Billion time bomb in the Bay Area set to go off.
http://ping.fm/FHw68 foreclosure optionARM

2009-09-19T17:17:00.001-07:00

HVCC: good intentions gone bad and killing real estate deals. http://ping.fm/Aem2Q foreclosure stopforeclosure foreclosurerelief

2009-09-19T15:44:00.001-07:00

Foreclosure and its implications are affecting all segments of society.
http://ping.fm/NUIF8
#foreclosure stopforeclosure

Two San Jose men accused of loan modification fraud

2009-09-04T15:46:00.000-07:00

Click here for the story.

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.

Steve Mun, Silicon Valley Realtor
www.stevemungroup.com

$10,000 California Tax Credit prorgram ends

2009-09-04T15:33:00.000-07:00

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

Option ARM - the next mortgage meltdown

2009-09-01T17:48:00.000-07:00

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

How to lose your $8000 tax credit

2009-08-26T11:06:00.000-07:00

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

Greed run amok: tax collectors are letting large banks foreclose on homeowners

2009-08-18T23:08:00.000-07:00

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.

Steve Mun, Silicon Valley Realtor

www.stevemungroup.com

Tests to determine if you have toxic drywall in your home

2009-07-22T14:52:00.000-07:00

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 Realtor
www.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.

Best Value end unit property in Whisman Station

2009-07-20T15:08:00.000-07:00

Steve Mun | Keller Williams Realty | steve@stevemun.com | 650-605-3188

140 Cottonwood Ct, Mountain View, CA

Luxuriously appointed planned community living.

3BR/2.5BA Condo

offered at $599,000

Year Built	1999
Sq Footage	1,288
Bedrooms	3
Bathrooms	2 full, 1 partial
Floors	3
Parking	2 Car garage
Lot Size	435 sqft
HOA/Maint	$190 per month

DESCRIPTION

As one of the unique and beautifully designed planned urban communities in the heart of Silicon Valley near many premier employers, there is a strong draw of potential owners to this community. The community, itself, is beautifully maintained with walls of lusciously green trees lining the avenues while exquisitely maintained parks, pools and playgrounds abound to serve the needs of your family within its safe confines. A deep sense of community permeates here as the associations hold their yearly July 4th and Halloween celebrations to bring neighbors together.

This is a rare end unit with one attached wall and lots and lots of natural sunlight. Granite counters and backsplash, bamboo wood flooring on the first two levels, central air conditioning, dual pane windows, custom window coverings, cathedral ceilings, washer dryer, extra storage units in garage and more. Everything a modern family's needs have been met.

Easy access to all the major freeways and public transportation with good schools nearby. Everything your family requires is within its gated surroundings; you simply want to live here.

see additional photos below

PROPERTY FEATURES

• Central A/C	• Central heat	• High/Vaulted ceiling
• Walk-in closet	• Hardwood floor	• Family room
• Living room	• Dining room	• Dishwasher
• Refrigerator	• Stove/Oven	• Microwave
• Granite countertop	• Washer	• Dryer
• Laundry area - garage	• Balcony, Deck, or Patio

COMMUNITY FEATURES

• Guest parking	• Clubhouse	• Swimming pool(s)
• Playground	• Gated property

OTHER SPECIAL FEATURES

• custom window coverings

• extra storage units in garage

• CAT 5 wiring

ADDITIONAL PHOTOS

Front	Fountain
Play ground	Pool
Walk way	Driveway
Park	Rear
Kitchen 1	Kitchen 2
Master suite 1	Master suite 2
View from living room	Living Room
Family Room	Dining area
Garage 1	Garage 2

Contact info:

Steve Mun

Keller Williams Realty

steve@stevemun.com

650-605-3188

For sale by agent/broker

Equal Opportunity Housing

Posted: Jul 17, 2009, 7:46pm PDT

Surprise! Loan Modifications are not working

2009-07-10T15:22:00.000-07:00

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

Desist and Refrain orders and/or accusations from California Department of Real Estate resulting from Loan Modifications

2009-07-07T12:50:00.000-07:00

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

Obama's Refiance Program raises the limit on it LTV ratio!

2009-07-02T14:56:00.000-07:00

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

Appraisers can be way off

2009-07-01T14:08:00.000-07:00

“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

Watch out for these foreclosure scams!

2009-06-23T17:30:00.000-07:00

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

Foreclosure scams.

2009-06-22T17:19:00.000-07:00

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

www.stevemungroup.com

Indecision is a decision in a foreclosure situation.

2009-06-20T11:26:00.000-07:00

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

New Listing: Whisman Station Townhome

2009-06-17T21:38:00.001-07:00

Steve Mun | Keller Williams Realty | steve@stevemun.com | 408-802-5641

140 Cottonwood Ct, Mountain View, CA

Luxuriously appointed planned community living.

3BR/2.5BA Condo

offered at $629,000

Year Built	1999
Sq Footage	1,288
Bedrooms	3
Bathrooms	2 full, 1 partial
Floors	3
Parking	2 Car garage
Lot Size	435 sqft
HOA/Maint	$190 per month

DESCRIPTION

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	High/Vaulted ceiling
Walk-in closet	Hardwood floor	Family room
Living room	Dining room	Dishwasher
Refrigerator	Stove/Oven	Microwave
Granite countertop	Washer	Dryer
Laundry area - garage	Balcony, Deck, or Patio

COMMUNITY FEATURES

Guest parking	Clubhouse	Swimming pool(s)
Playground	Gated property

OTHER SPECIAL FEATURES

custom window coverings

extra storage units in garage

CAT 5 wiring

ADDITIONAL PHOTOS

Front	Fountain
Play ground	Pool
Walk way	Driveway
Park	Rear
Kitchen 1	Kitchen 2
Master suite 1	Master suite 2
View from living room	Living Room
Family Room	Dining area
Garage 1	Garage 2

Contact info:

Steve Mun

Keller Williams Realty

steve@stevemun.com

408-802-5641

For sale by agent/broker

Equal Opportunity Housing

Posted: Jun 17, 2009, 10:00am PDT

New Listing: Whisman Station Townhome

2009-06-17T21:38:00.000-07:00

Steve Mun | Keller Williams Realty | steve@stevemun.com | 408-802-5641

140 Cottonwood Ct, Mountain View, CA

Luxuriously appointed planned community living.

3BR/2.5BA Condo

offered at $629,000

Year Built	1999
Sq Footage	1,288
Bedrooms	3
Bathrooms	2 full, 1 partial
Floors	3
Parking	2 Car garage
Lot Size	435 sqft
HOA/Maint	$190 per month

DESCRIPTION

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	High/Vaulted ceiling
Walk-in closet	Hardwood floor	Family room
Living room	Dining room	Dishwasher
Refrigerator	Stove/Oven	Microwave
Granite countertop	Washer	Dryer
Laundry area - garage	Balcony, Deck, or Patio

COMMUNITY FEATURES

Guest parking	Clubhouse	Swimming pool(s)
Playground	Gated property

OTHER SPECIAL FEATURES

custom window coverings

extra storage units in garage

CAT 5 wiring

ADDITIONAL PHOTOS

Front	Fountain
Play ground	Pool
Walk way	Driveway
Park	Rear
Kitchen 1	Kitchen 2
Master suite 1	Master suite 2
View from living room	Living Room
Family Room	Dining area
Garage 1	Garage 2

Contact info:

Steve Mun

Keller Williams Realty

steve@stevemun.com

408-802-5641

For sale by agent/broker

Equal Opportunity Housing

Posted: Jun 17, 2009, 10:00am PDT

90 days moratorium on foreclosures takes today

2009-06-15T17:51:00.000-07:00

Like the Federal Government's recent effort during the Holiday Season, California today enacted the 90 day moratorium in an effort to help homeowners. Let's hope this will help out a lot of my silicon valley short sale clients and other Californians in need.

California imposes 90-day foreclosure moratorium

The Associated Press

Posted: 06/13/2009 04:53:54 PM PDT

Updated: 06/13/2009 04:53:55 PM PDT

SACRAMENTO, Calif.—California is imposing a 90-day moratorium on housing foreclosures under a new law that takes effect Monday.

The law is expected to make lenders try harder to keep borrowers in their homes. Loan companies must prove they tried to modify the delinquent loans before they can begin foreclosing.

But supporters acknowledge the California Foreclosure Prevention Act won't stop thousands of foreclosures from eventually happening. There have been more than 365,000 foreclosures in California since early 2007, with many more already scheduled.

The bill passed in February is similar to the Obama administration's Making Home Affordable Program that began in March.

Both encourages lenders to cut interest rates or rewrite loans to affordable levels.

Steve Mun, Silicon Valley Realtor
www.stevemungroup.com

Cupertino Market Conditions May 2009

2009-06-08T13:49:00.000-07:00

Cupertino Single Family Homes

Cupertino Condo/Town Homes

Steve Mun, Silicon Valley Realtor
www.stevemungroup.com

Santa Clara County Market Conditions May 2009

2009-06-05T16:11:00.001-07:00

For three consecutive months, the volume of sales and price have increased while the inventory has decreased. A positive sign that the real estate market is seeing benefits of the $8,000 tax incentive for first time home buyers. Lots of activity out there in the starter home market as the affordability index has risen.

Santa Clara County Single Family Homes

Santa Clara County Condo/Town homes

Steve Mun, Silicon Valley Realtor
www.stevemungroup.com

What is a short sale?

2009-05-26T21:24:00.000-07:00

What exactly is a Silicon Valley Short Sale?

Simply put, it is when you sell a home for less than what is owed on it with the lender’s approval and the lender forgives you for the difference (what is short) between what is owed and for what it ultimately sells.

Why would the lender agree to do this?

Money. It’s always about the money isn’t it? Typically, it is cheaper for the lenders if the house is sold prior to getting into foreclosure and being sold at auction. There are costly expenses associated with foreclosing on a home (aside from the fact that owners who are going through foreclosure typically destroy the homes before they are evicted); but with silicon valley short sales, it takes less time (meaning less carrying cost for the lender) and makes more economic sense for lenders if the homeowners have an interest in and participate with the lenders in selling their homes, rather than fighting with them. The lender saves money because they don’t have to pay for eviction, go through an auction only to have to take the property back because the auction did not meet their floor price or no one attempted to bid, make repairs and then pay Realtors to sell it as a bank owned (REO) property which typically gets deeply discounted by buyers anyway, in the meanwhile, still paying for taxes, insurance, association fees, etc... that the seller failed to pay. A home where the seller still resides and maintains will fetch a much higher selling price than an abandoned eye-sore type of property.

Why would it be good for the seller?

It allows them to have control over their economic future and sense of dignity. Let’s face it, if you are contemplating foreclosure, that means your financial situation will not be changing for the better in the immediate future. Don’t let others dictate your financial future; get involved and control and participate in your own financial outcome.

The most important facet to the silicon valley short sales process is that it permits you to have control over your financial future. If you are forced into a foreclosure situation, your credit score will be devastated as you had no participation with the lender to help address the situation; additionally, after the foreclosure, the second lender will most likely come after you for the deficiency. The net result will be as devastating as a bankruptcy and you will not be able to repair your credit to buy a car, a home or apply for a credit card for many years. If you choose to take control and complete a lender approved silicon valley short sale, you will be able to salvage your credit score by multiples and give yourself the opportunity to be in a situation to buy a home again in a relatively short time. Naturally, individual situautions will vary in results.

A mis-perception floating around out there is that the short sale Realtor works for the lender. That is absolutely wrong. The listing agreement is a contractual relationship between the seller and the Realtor; the lender is not a party to the contract and has no relationship with the Realtor. WE WORK FOR YOU and have a fiduciary relationship with you! We look out for your interests.

Who pays for the commission?

Because you are facing financial difficulties, the lender is required to pay for the commission and associated closing costs for completing the silicon valley short sale. (This is why some people believe the Short Sale Realtor works for the lender).

My team has had extensive experience successfully closing silicon valley short sales, up and down Silicon Valley and the rest of Northern California for years. We have helped numerous clients navigate themselves out of their difficult situations and into better futures. Don’t struggle and try to “wing it” on your own, or worse, collapse under the pressures of stress and simply give up. There is an option available to you. Let professionals with experience help you with your financial future. Contact us to find out the details. YOUR ARE NOT ALONE DURING THESE DIFFICULT TIMES.

Steve Mun, Silicon Valley Realtor
www.stevemungroup.com

What is behind the buying frenzy?

2009-05-21T16:32:00.000-07:00

If you have been following the real estate market in the past few months, you are aware that there is a significant increase in sales activity. Buyers who have been sitting on the fence are coming out of the woodwork to compete for lower priced properties.

So what is the root cause of this purchasing activity? Well they are a combination of several factors, including the low interest rates, first time home buyer incentives, but ultimately, I believe it has to do with the First Time Buyer Affordability Index. What exactly is the Affordability Index? It “measures the percentage of households that can afford to purchase an entry-level home in California” according to California Association of Realtors (CAR). Now more Californians are able to afford an entry level home than those who are unable.

This number is important because it had gone down to 26% for California in Q2 of 2007. In Q1 of 2009, these number had increased to 69% for California and 62% in Santa Clara County! First time home buyers who were priced out of the market are now finding due to the market correction, their household income is now permitting them to buy a home.

It would be interesting to find out the numbers for Q2.

Steve Mun, Silicon Valley Realtor
www.stevemungroup.com

97.5%: How to save yourself from leaving thousands of dollars on the negotiating table

2009-05-20T22:49:00.000-07:00

I got an email today from a buyer who interviewed me and a couple of other agents over the weekend. I gave him a run down of my superior service and how that would bring added value to his home purchasing experience and gave him a run-down of what to expect on his up coming journey of home purchasing and gave him my Home Buyer Handbook.

His email today said essentially that one of the agents offered to give him a rebate and wanted to know if I would match that offer beyond my offer to help pay for his closing costs. That was all he was interested in; nothing contemplating the differences in level of service or experience or anything else for that matter regarding the different Realtors, just money. And to a certain degree, I can understand his views, but he needed to ask more profound questions.

This particular buyer was considering purchasing a $400,000 home, and his primary focus was on trying to extract a little over a thousand dollars from any agent to give him a sense that he was getting a good deal.

But I would argue he is focusing in on the wrong area of the transaction in seeking value. Trying to get value by locking in on the agent’s commission is akin to focusing in only on the single tree rather than seeing the entire forest: he needs to see the bigger picture.

The average agent commission is 2.5% of the purchase price. When you are in the market for a home in the $400,000 or less market (which happens to be the most popular buy in the South Bay), where most of these listings are getting multiple offers due to very high demand, not leaving any money on the table in dealing with the listing agent is of paramount importance [see the graphs for an illustration of the market in San Jose area]. This is where experience, negotiation skills and networking skills come into play; this is where agents demonstrate their true value to stand out from the crowd. Simply faxing in an offer and hoping it is the best offer will not get the job done. I believe everyone has heard of the saying: you get what you pay for. That statement is very appropriate here.

It is a mistake to focus only on the 2.5% of the commission to extract your true value; the other 97.5% of the purchase price is where you can truly gain or lose significant value. You may save a few hundred dollars by getting an agent to give you some rebate; but you can easily lose a few thousand dollars if your agent is not experienced or is too focused on doing quick volume business and not looking out for your best interest because they have to churn clients. Ultimately, you will end up paying for quality one way or another.

You may certainly disagree with my assessment of the situation here as everyone has the right to try to pay the least money for services. But take a moment to consider this: Is it always a good idea to look for the cheapest service available? There will be a wide range of fees that Realtors will charge; but a good Realtor, like any other profession, will command a fee that is commensurate to their skills and experiences. Look at the entire picture; don’t just look at getting a few dollars back when making the most expensive purchase of your life; look at not leaving any money on the table.

Steve Mun, Silicon Valley Realtor
www.stevemungroup.com

FHA Lenders can now use $8,000 tax credit as down payment!

2009-05-13T14:21:00.000-07:00

Most first time homebuyers are aware that the 2009 Housing Stimulus Bill permits the first time home buyer who purchases a home in the 2009 calendar year to deduct $8,000 (tax credit) or 10% of the purchase price, which ever is less.

Yesterday, the HUD announced the new decision to permit FHA lenders to allow first time home buyers to use up to the full $8,000 tax credit as down payment.

This is an interesting move which has the potential to help many first time home buyers out of a difficult situation by permitting them to use the credit up front rather than later at tax time. This will be especially helpful for us in California with one of the highest housing costs in the nation.

Steve Mun, Silicon Valley Realtor
www.stevemungroup.com

Bank of America and its ridiculous Authorization Form

2009-05-12T17:49:00.000-07:00

B of A refused to accept a general authorization form that other lenders accept which simply states that the client consents to the lender giving me, as their Realtor, any financial information as it relates to the sale of their property.

B of A doesn’t want to accept that, fine. I have to jump through their hoop, if I want to play their game: I understand.

Here is the kicker, though. Their authorization form not only asks for the client’s social security number (SSN), but it asks for the Realtor’s SSN. Their reasoning for asking me for my private information? For verification purposes, it says on the form. I don’t know about you, but I will not give my SSN to B of A or anyone else, with whom I have no direct financial relationship.

So I call up the Loss Mitigation Department and asked them why it would be necessary for them to have my SSN for me to represent my client in her silicon valley short sale. The B of A agent says it is for verification purposes. I ask what besides my SSN would verify that I am who I say I am. She puts me on hold for about 5 minutes and comes back and says the only other form of identification method B of A would accept for verification purposes is my Tax ID number.

I tell her why is it necessary for B of A to have my Tax ID number to verify who I am? They have a myriad other means of identifying me using public record, like my California Department of Real Estate ID number; why only those two highly sensitive types numbers. But I made it clear to her I would not give B of A my Tax ID number either.

She puts me on hold for another 5 minutes and comes back and tells me (this is verbatim) “we just changed our policy and, now it is OK for designees to choose any 4 digit pass code and use that to verify” themselves. She wanted me to cross out the SSN and fill in PASS CODE, in its place. Interesting how it went from only SSN or TIN to just make up any number in a matter of 10 minutes……..

Do I buy her story as to why it is necessary for B of A to have those sensitive numbers for designees to do their jobs: No! I can go into my conspiracy mode and speculate as to why B of A would want the designee to provide them with something as personal, as their SSN in this crazy era of identity theft. My guess is they keep asking because people must be giving up their SSN without pushing back, thinking in order for them to get their silicon valley short sale processed, they have to do everything the lenders ask of them. Lenders will often lie to you to get money out of your clients, so don’t think they are beyond lying about other things for other nefarious reasons.

If you are dealing with B of A and their Authorization Form asks for your SSN, it is not necessary to give it to them (we can extrapolate that the same is true for all other lenders who may be asking as well). Here is the moral to this story: push back, don’t assume you have to give lenders everything they want.

Don’t even get me started on the second portion of my story about the “servicing fee” portion on the same Authorization Form…….

Steve Mun, Silicon Valley Realtor
www.stevemungroup.com

The Shift continues.......

2009-05-04T15:21:00.000-07:00

The shift continues……..

I wrote about a shift that was occurring in the market place in Santa Clara County a little while back. Luckily, it seems the shift is continuing. And given the amount of activity out there in the real estate market place right now (as cited by Mercury News), we should have a lot of activity in the coming summer months as long as interest rates remain low and hopefully no more layoff notices from Valley employers.

The monthly inventory is continuing to decrease; number of properties in contract is still rising; and the number of properties actually sold is also continuing to rise. Obviously we are far from being out of the woods, but the trend is a welcome one.

Steve Mun, Silicon Valley Realtor
www.stevemungroup.com