If you are attempting a loan modification and you are wondering why the bank is not allowing you to do a loan modification, we have found an online explanation to why it many times benefits a bank to do a short sale rather than a loan modification.  It is our prediction that there are going to be many short sales this year because of this process. 

Click on the link below and it will take you to the video.  If you ever have any questions regarding either a loan modification or a short sale, please call us any time.

Watch Video    

This FHA program is called the "FHA Access Program." 

• 99.5% Financing (almost 100%)
• NO "first time home buyer" requirement
• SFR, PUD's, and condos all qualify for this program
• No cash reserves required
• Multiple properties are ok
• 6% seller concessions are ok
• Gift funds for the 1/2 down payment are ok

This is a great program.  Give us a call or send us a message through our website to see if you qualfy for this program...

Los Angeles, with all its diversity has a New Year's Eve celebration for every taste and every budget. Here are some of the big ones. For more New Year's events, visit www.newyears.com.

This information is for December 31, 2009.

• The annual Giant New Year's Eve celebration will be at the Westin Bonaventure Hotel in Downtown Los Angeles. The event will take place in two huge ballrooms and on the poolside terrace. This year's lineup includes Above & Beyond, Christopher Lawrence, Cosmic Gate and more to be announced.
  When: 8 pm to 4 am.
  Where: 404 S Figueroa Street, Los Angeles, CA 90071 (Downtown)
  Tickets: General Admission tickets are $65 advance. VIP tickets: $165 include separate entrance, VIP lounge and open bar,
  Food: Drinks and food are extra for general admission.
  Parking: At the Bonaventure for a fee
  Age Limit: 21 and up
  Info: www.giantclub.com
  Hotel: Bonaventure group hotel rates starting at $169/night at this Giant Hotel Reservations link, otherwise there's a 2-night minimum for New Year's. Compare rates at other Downtown hotels.
  
  
• The New York in LA New Year's Eve bash Gridlock will be held once again at Paramount Pictures Studio Lot. The party takes place on the studio's New York City set with 8 DJs on multiple stages and a live performances. Last year there were Free Ferris wheel rides. Dress for snow!
  When: 9 pm to 3 am
  Where: Paramount Pictures, 5555 Melrose Ave, Hollywood, CA
  Tickets: $150 general admission, $250 VIP, table and cabana packages available
  Food: Food stations throughout venue, open bar for VIP only
  Parking: included in adjacent lots on Gower and Van Ness
  Age Limit: 21 and up
  Info: www.newyears.com
  Hotel: Compare rates at hotels near Paramount Pictures
  
  
• DASK Productions' annual New Year's Eve Ball is at the Crowne Plaza Redondo Beach and Marina Hotel this year, taking their Hollywood style to the Beach. There will be multiple rooms with many DJs, aerialists, performance artists and a midnight countdown show and balloon drop.
  When: 9 pm to 2 am.
  Where: Crowne Plaza Redondo Beach, 300 N. Harbor Drive, Redondo Beach, CA 90277
  Tickets: $40 General Admission advance $50 at the door, $100 VIP. Reserved VIP tables available.
  Food:
  Age Limit: 21 and up
  Info: www.daskproductions.com, Tickets
  Note: Rooms from $180/night at the Crowne Plaza Redondo Beach. Compare rates at other Redondo Beach hotels.
  
  
• Together as One is an all-ages event at the LA Sports Arena. Multiple dance areas with top local and international DJs. This year's talent includes David Guetta, John Digweed, Dubfire, Sander Kleinberg and more.
  When: 7 pm to 4 am.
  Where: The LA Sports Arena, 3939 S. Figueroa, Los Angeles, CA 90037
  Tickets: $60 to $80 for General Admission depending when you buy them. VIP tickets for backstage access, free Vodka and Beer Bars and other refreshments are $125-$150.
  Food: available for purchase
  Parking: There are multiple parking lots around the venue for varying rates.
  Age Limit: All ages
  Info: www.newyearsevela.com
  Discount: with advance purchase
  Hotel: Compare rates at hotels near the LA Sports Arena
  
  
• New Year's Eve Extravaganza at The Kress . This Hollywood hot spot will host 4 floors of fun, but only the VIP ticket will get you into the rooftop patio, which is a bargain, considering that it usually requires $1500 bottle service to gain access to the exclusive venue.
  When: 10 pm to 2 am
  Where: The Kress, 6608 Hollywood Blvd, Hollywood, CA 90028
  Tickets: $20 general admission (3 floors, no drinks), $75 open bar (3 floors), $100 VIP (4 floors including rooftop), bottle service and table packages available
  Food: Only in restaurant
  Parking: $20 Valet
  Age Limit: 21+
  Info: http://www.newyears.com/Events/ShowEvent.aspx?eventId=6761
  Hotel: Compare rates at hotels near The Kress
  Read my Review of The Kress
  
  
• The Queen Mary in Long Beach hosts its annual New Year's Eve all over the ship. Your ticket includes admission, fireworks and access to entertainment venues including four live music venues and a DJ dance club. This year includes Top 40s, Big Band, Dixieland jazz and dueling pianos.
  Where: The Queen Mary, 1126 Queen's Highway, Long Beach, CA 90802, at the south end of the 710 Freeway, on the water.
  Tickets: $89.99
  Food: Food is available for purchase in all restaurants from $29.95 for the Promenade Buffet to a 7 course prix fix menu at Sir Winston's for $179.50.
  Parking: $15
  Age Limit: 18 and over
  When: 8 pm to 1:30 am. (doors open at 6 pm)
  Info: www.queenmary.com
  Hotel: Hotel specials on the Queen Mary. Compare rates at nearby hotels including the Hotel Maya.
  Queen Mary Visitors Guide
  
  
• Universal City Walk has a huge outdoor New Year's Eve Countdown Bash that's free to the public. The event features live music and DJs beginning at 9 pm, and fireworks from 2 ends of the street at midnight.
  When: 9 pm - 12:30 am
  Where: Universal City Walk, at the top of Universal Studios Blvd. off the 101 Freeway.
  Tickets: Free
  Food: Available at City Walk restaurants
  Parking: $10 general after 5 pm to $22 max for valet.
  Metro: Red Line to Universal City station
  Age Limit: All ages
  Info: www.citywalkhollywood.com
  Hotel: Hilton Universal and Sheraton Universal are walking distance. Compare rates at other nearby hotels.
  Universal CityWalk Visitors Guide
  
  
• New Year's Eve in Downtown Long Beach is a free street party with multiple live music and DJ stages on Pine Avenue and in the East Village Arts District. A highlight will be Red Bull stunt driver Travis Pastrana's attempt to break a world record by jumping his rally car off the Pine Avenue Pier onto a floating barge anchored in Rainbow Harbor at 9 pm. At midnight, you can see fireworks off the Queen Mary from the waterfront.
  Where: Pine Ave from 1st to 3rd, Linden and 1st St
  Tickets: Free
  Food: Restaurants will be open
  Parking: various lots
  Age Limit: all ages
  When: 8 pm to 12 am (tentative)
  Info: www.dlba.org
  Hotel: Compare rates at Long Beach hotels.

Orange County partiers have only one mega-party that I could find going on this year.

• Orange County New Year's Eve at the Hilton Hotel Costa Mesa calls itself the Official New Year's Eve Party of the OC. It includes four general admission party areas with three additional VIP zones, multiple live music stages, DJs, roaming entertainment, a fashion show and an Orange Ball Drop. After Party is across the street at the Hotel Hanford Costa Mesa.
  When: 8 pm to 2 am.
  Where: Hilton Hotel Costa Mesa, 3050 Bristol St, Costa Mesa, CA 92626
  Tickets: $60 and up advance, $100 at the door, VIP tickets are $150-$250
  Food: not included
  Parking: fee
  Age Limit: 21 and up
  Info: www.ocnye.com, Tickets
  Hotel: Special rate rooms available at the Hilton.
  
  
• The Ambassador New Year's Eve Yacht Party is a comparatively small event for just 150 people, but I'm including it as something quintessentially Southern Californian. The four-hour luxury cruise through Newport Harbor includes premium open bar all night, a champagne greeting, appetizer buffet, multiple dancing and lounge areas.
  When: 8:30 pm to 1 am.
  Where: 2901 W. Coast Hwy, Newport Beach CA 92663
  Tickets: $155-$170
  Food: Appetizers
  Parking: fee
  Age Limit: 21 and up
  Info and Tickets: http://www.newyears.com/Events/ShowEvent.aspx?eventId=6764
  Hotel: Compare rates at Newport Beach hotels.

December 10, 2009

HomeGain Releases Results of Fourth Quarter Realtor® Home Prices Survey

Realtors express their views on the direction of home prices in 2010; First time home buyers tax credit spurs sales; 56% of Realtors disapprove of Obama's performance as President

Emeryville, CA - December 10, 2009 - HomeGain, the first website to provide free instant home values, today announced the results of its fourth quarter Home Prices Survey of Realtors® based on the responses of 928 U.S. real estate agents and brokers across the United States.

The fourth quarter survey shows that 72 percent of Realtors think home prices will either stay the same (48 percent) or increase (24 percent) in the next six months. HomeGain's third quarter survey reported that 69 percent of Realtors thought home prices would stay the same (46 percent) or increase (23 percent) versus 47 percent of Realtors who thought home prices would stay the same (36 percent) or increase (11 percent) in the first quarter survey.

Twenty one percent of Realtors surveyed said more than half of their transactions in the past three months involved a first time home buyer. Only 11 percent of Realtors surveyed said that none of their transactions involved a first time homebuyer.

According to the fourth quarter survey, 41 percent of homeowners believe that their homes should be listed 10 to 20 percent higher than what their Realtors' recommend, up from 38 percent of homeowners who believed so in the third quarter and 36 percent who believed so in the in the second quarter.

Seventy-six percent of home sellers believe that their homes are worth more than their Realtors' recommended listing price, up from 74 percent in the third quarter survey and 71 percent in the second quarter survey.

Conversely, 62 percent of home buyers think that homes are overpriced, down from 64 percent in the third quarter and up from 59 percent of home buyers who thought homes were overpriced in the first quarter.

"The fourth quarter HomeGain Home Prices Survey of Realtors shows that Realtors believe that the first time home buyers tax credit has driven sales and stabilized home prices, for now. Realtors, however, expressed concerns about the cost of the credit to tax payers and whether sales will continue once the credit expires later next year and additional inventory hits the market," stated Louis Cammarosano, General Manager at HomeGain. "The vast majority of Realtors expect prices to remain the same or increase in the first six months of 2010."

Forty-two percent of Realtors surveyed indicated approval of Barack Obama's performance as President, unchanged from the third quarter and down from 57 percent in the second quarter. Thirty eight percent of surveyed respondents 'strongly disapprove' of the President's performance and 18 percent 'somewhat disapprove', earning the President a 58 percent disapproval rating. The President fared slightly better in the nationwide Rasmussen Daily Presidential Approval Index taken during the same period as the HomeGain survey, with his approval rating hovering in the 46-47 percentage range.

Real estate agent survey respondent commentary included:

• "The homebuyer tax credit has helped, but where are the jobs from that huge tax burden so-called the stimulus bill? We need the jobs more than anything else to help the economy and housing market rebound," noted Joe McAoy of Virginia Commonwealth Realty.
• "Buyers think prices are still heading down, while sellers think prices are now heading up. It's our job to bring them together."
• "I commend the President for the work he has done to help America's economy get back on solid ground. I feel that the tax incentives have dramatically helped the housing market." The fourth quarter HomeGain Home Prices Survey of Realtors was conducted from December 1-5, 2009.

Food for Thought

THANKSGIVING TIDBITS AND TIPS

 "Thanksgiving Day comes, by statute, once a year; to the honest man it comes as frequently as the heart of gratitude will allow."
                               ~ Edward Sanford Martin

Although some historians claim that the first day of giving thanks in the New World was on December 4, 1619, at Berkeley Hundred in Virginia, it is commonly believed that the first actual celebration of the harvest and blessings from God took place in Plymouth in 1621.

The festivities lasted three days and included feasting, entertainment, and competitions. President George Washington issued the first governmental National Thanksgiving Proclamation in 1789. In 1863, during Abraham Lincoln's presidency, Thanksgiving became a federal holiday, and FDR, in 1939, designated the fourth Thursday in November as the official Day of Thanksgiving.

Food Fact:

The first Thanksgiving feast most likely did not include turkey, mashed potatoes, or pumpkin pie, but the early settlers did enjoy seafood of all kinds, seals, swans, geese, corn, turnips, and spinach.

Here are some great sites for Thanksgiving recipes!! Here you will find food from the past (chestnut stuffing, mince pies), meals for the vegetarian or diabetic, healthy adaptations for old favorites, gourmet dishes, treats for kids (Daddy's Popcorn, cheesy ranch Chex mix). Also visit the websites of Ocean Spray, M and M's, Pepperidge Farm, and McCormicks. And get all your Turkey cooking questions answered at Butterball.com or call  the Turkey Talk Line - 800-288-8372.

"What we're really talking about is a wonderful day set aside on the fourth Thursday of November when no one diets. I mean, why else would they call it Thanksgiving?
                                  ~Erma Bombeck
                                    "No One Diets on Thanksgiving," 26 November 1981

Tasty Tip:
To make basic cornbread stuffing crunchy and delicious, simply add lots of toasted pecans and moisten the mixture with sweet apple cider. You can also add liquid bacon for a smokey flavor. For extra zing, do this while softly singing, "Oh, turkey dear, oh, turkey dear, how lovely are thy feathers..." and drinking spiked hot cider punch!

More tips: To calculate amount of food and drink you'll need, follow this guide.

• Whole turkey--1 lb. per person
• Bone-in turkey breast--¾ lb. per person
• Boneless turkey breast--½ lb. person
• One bottle of wine = about five glasses

Time required for thawing the bird: for each 4 ½ lbs. of frozen turkey, allow 24 hours of thaw time in the refrigerator. Once fully thawed, the turkey may be refrigerated for 1-2 days. And still another...Suggestions for turkey leftovers include dumplings, patties, chili, tetrazzini, barbeque, turkey/wild rice soup, turkey/ginger/apricot salad, all sorts of casseroles, and a myriad of others found at www.allrecipes.com and many, many others.

Want to share Thanksgiving greetings with friends and family? AmericanGreetings.com, BlueMountain.com, 123Greetings.com, Hallmark.com will send them out for you free of charge. 

And speaking of greetings--and gratitude--Xerox has a web site that lets you send a message of thanks to soldiers currently serving in Iraq. This is a FREE service and only takes a minute to do. What a great way to spread the spirit of the season! Visit LetsSayThanks.com today.

Thanksgiving Myth:

Ever feel sorry for the poor Pilgrims always dressed in drab shades? Not so, say many historians. Those early settlers used vegetable dyes to produce colorful attire, and although the colors weren't as bright as they are today, it was not at all unusual to see clothing made of wool, linen, fur, and leather in hues of blue, green, violet, red, yellow, orange, and purple. Many of the Pilgrims were skilled in clothing related trades, and they produced fashions which mirrored those of England at the time. And no buckles on shoes or hats, either--those didn't come into style until much later.

HOLIDAY DECORATIONS--EXERIOR AND INTERIOR

Create a warm and thankful holiday mood by decorating your doorstep with nature's bountiful harvest.
REQUIREMENTS: Cornucopia or Baskets, Yellow and Orange Christmas Tree Lights,
Ears of Indian Corn, plain Wooden Wreaths, Gourds, Pine Cones, Oak Leaves, Pumpkins, a yard long Velvet Ribbons, glue.

INSTRUCTIONS: Purchase a cornucopia (horn of plenty) basket and arrange pumpkins, corn, gourds, apples and nuts inside so that some of them are spilling out onto the walkway. Create garlands of autumn leaves and orange and gold Christmas lights and wrap them together around any poles or columns.  Place pumpkins, stalks of Indian corn and gourds along the edges of walkways and steps. Buy a plain wooden wreath and decorate it with artificial autumn leaves, nuts, pine cones and berries. Add a fall-colored velvet bow.  Hang the wreath on the door.  Tie around orange and gold lights in any trees or plants near the doorway.  Wrap garlands of artificial autumn leaves in the branches along with colored lights if some of your trees are bare from cold weather, Make sure none of your decorations block the peephole in your door.

CAUTION:  Check to make sure that your outdoor decorations are not in the direct line of your sprinklers. 

AND INTERIOR...A PAPER CHAIN OF BLESSINGS

You'll need:  Construction Paper, Scissors, Markers, Stapler

Directions:  Cut out 2 inch by 6 inch strips from various colored construction paper. Have everyone write one thing they are thankful for on the strips. Form the strip into a circle and staple. Make sure the writing is side out!  Take the second strip and stick it through the center of the first circle you made then staple. Continue doing this until you have used all your strips.

These hints--and hundreds of other craft ideas, songs, turkey jokes and one liners, and games are found here. A GREAT source of ideas!!

And now Kid Stuff...

Turkeys made from paper, pine cones and gourds. Download Thanksgiving screensavers. Make special Indian Corn Napkin Rings. Enjoy Thanksgiving crossword puzzles, jokes, and trivia.

Get kids into the Thanksgiving spirit with a festive turkey hat.  Make a turkey out of yarn and paper. And dress up the fridge with Indian corn magnets.

Read beautiful Thanksgiving stories, sing Thanksgiving songs, and learn about Thanksgiving around the world.

Help children make the most of Thanksgiving by planning activities that become family traditions. During dinner, have everyone tell what they are most thankful for.  If someone is thankful for food, plan to share a meal with someone less fortunate. If the kids are thankful for toys, collect unused or nearly new toys for a toy drive.

GIVING BACK...

Thanksgiving is a perfect time to share our blessings with those less fortunate than we are and to spread the spirit of friendship and community. Opportunities for helping others during the holiday season are many and can involve one individual or the entire family. Some ways to foster goodwill and embrace the idea of sharing include:

Contribute non-perishable foodstuffs for a local food bank. Give money to local agencies who feed the hungry. Volunteer your time to sort supplies, set up and/or clean up, or serve meals on Thanksgiving Day.

Invite a neighbor who lives alone to join you for dinner. Take a warm plate of Thanksgiving food--and a big smile--to a shut-in.  Contribute to holiday food collection bins in grocery stores. Purchase pre-packaged boxes of food (generally around $10.00) to be distributed by local grocers. Check with your local place of worship to see where your help is most needed.

So there you have it--facts, myths, tips, websites, and everything you have ever wanted to know about Thanksgiving. May yours be an enjoyable celebration shared with friends and family and filled with gratitude for all your blessings!

We are so excited to be able to tell our buyers that they still have the opportunity to earn up to an $8,000 tax credit when buying a property!  The deadline to buy a property and still earn the tax credit has been extended to the end of April!  They are even offering a reduced $6,500 to repeat buyers. 

You can read the full article in the LA Times....Click here  

On Oct 11th, 2009, Governor Schwarzenegger signed Senate Bill 94 (Calderon), and the legislation took effect immediately upon his signature.  Thus, California law now prohibits and person , including real estate licensess and attorneys, for demanding or collecting an advance fee from a consumer for a loan modification or mortgage loan forbearance services affecting 1-4 unit resedential dwellings. 

IF YOU ARE A REAL ESTATE BROKER, OR THE DESIGNATED OFFICE OF A LICNESED CORPORATION, WHO HAS BEEN ISSUED A "NO OBJECTION" LETTER BY THE DEPARTMENT OF REAL ESTATE FOR LOAN MODIFICATION OR OTHER MORTGAGE LOAN FORBEARANCE SERVICES, YOU CAN NO LONGER ENTER INTO THESE AGREEMENTS EFFECTIVE AS OF OCTOBER 11TH, 2009 NO CAN YOU COLLECT ANY ADVANCE FEES FOR SUCH SERVICES.

Agreements entered into and advance fees collected prior to October 11, 2009 are not affected.  Advance fees inadvertantely collected after Oct 11, 2009 must be fully refunded. 

All real estate licensees should become familiar with provisions of SB94 as there are substantial administrative and criminal penalties for violations.  For full details on Senate Bill 94, CLICK HERE 

By JAMES R. HAGERTY

(See Corrections & Amplifications item below.)

Banks and loan investors are starting to bite the bullet and lower the principal due on home mortgages for some struggling borrowers, a new report from bank regulators shows.

That's good news for some homeowners, but may portend more write-offs over the next few years for banks and other lenders now wading through hundreds of thousands of applications for loan modifications. The tradeoff for banks is that by taking the hit now they can boost their chances of being repaid.

Banks and loan servicers modify loans primarily by reducing interest rates or extending the term of the mortgage. These methods can temporarily help borrowers struggling to make payments without requiring lenders to lower the principal owed. Now, in a small but growing number of cases, banks are going further and writing off some of the loan altogether.

Part of this is due to prodding from the Obama administration, which has made saving homeowners from foreclosure a cornerstone of its economic-rescue strategy. The administration in March announced plans aimed at helping as many as nine million households struggling with mortgage debt through loan modifications or refinancings. The plans include financial incentives for mortgage-servicing firms that modify loans.

At the same time, banks now have more flexibility to modify loans because of their success in stabilizing their balance sheets and, in some cases, raising fresh capital. Banks can afford "to take the pain up front," said Kevin Fitzsimmons an analyst at Sandler O'Neill & Partners LP in New York. "If they want a legitimate chance of salvaging something out of the loans, they are better off taking the loss now."

Bloomberg News

Rows of tract houses this month in Las Vegas. The median home price in the area fell 40% to a 10-year low in August amid sales of foreclosures.

The portion of loan modifications in the second quarter that involved reducing the principal jumped to 10% from 3.1% in the first quarter, according to the report released Wednesday by the Office of the Comptroller of the Currency, or OCC, which regulates national banks.

Alejandro Estrella, a mail carrier in Riverside, Calif., said he was surprised when his lender, the Wachovia unit of Wells Fargo & Co., agreed recently to reduce the principal he owed on two mortgages on his home by 18% to about $237,000. That will lower his monthly payments to less than $1,500 from about $2,100. "I wasn't expecting it," said Mr. Estrella, who started out seeking just a reduction in his interest rate and got counseling from Springboard Nonprofit Consumer Credit Management.

Principal reductions are still the exception, though. Tom Kelly, a spokesman for J.P. Morgan Chase & Co., said the lender first tries to make loans affordable by lowering the interest rate for borrowers who qualify for modifications. If that doesn't result in a low enough payment, the bank may extend the term of the loan or defer repayments on part of the principal. That deferred principal would come due if the home is sold or refinanced.

But banks and loan servicers are recognizing that modifications don't always work if the borrowers aren't given a big enough break. Of loans modified in this year's first quarter, 28% were in default again within three months, the OCC said. Among those modified in last year's second quarter, 56% were in default again a year later.

Although the Obama administration programs for averting foreclosures got off to a slow start, they are starting to result in larger numbers of modified loans. The OCC report tallied 439,574 agreements to help troubled borrowers, including loan modifications and other repayment plans, in the second quarter. That was up 75% from a year earlier. Of that total, 142,362 of the agreements were classified as loan modifications, and 10% of those involved reducing the principal.

Beyond Housing, a nonprofit in St. Louis that counsels distressed borrowers, recently won a principal reduction for Evone Lester, a prison employee who had fallen behind on her payments and faced foreclosure. The loan was being serviced by Wells Fargo & Co. but was owned by an investor, Beyond Housing said. The investor agreed to reduce the loan balance to about $48,800 from $72,000, said Chris Krehmeyer, chief executive of Beyond Housing. That helped cut the monthly payment to $761 from $1,039.

In spite of these efforts, foreclosures continue to rise. In a report last week, Amherst Securities Group, a New York research firm, estimated that about seven million homes -- representing 12% of U.S. homes with mortgages -- will end up changing hands in foreclosures or related transactions over the next few years. The company said it doesn't expect that loan-modification efforts will ease the problem significantly, largely because so many people default again.

The OCC's report, which covers about 64% of all U.S. home mortgages outstanding, found that 11.4% of those mortgage loans were at least 30 days overdue or in foreclosure at the end of the second quarter, up from 10.2% three months earlier and 7.4% a year before.

The OCC isn't requiring banks to reduce principal, said Joseph Evers, a deputy controller at the regulatory agency. But, he said, the OCC has told banks they need to make sure modifications are "more sustainable," giving borrowers a real chance to keep up with the new payments.

Separately, the Federal Reserve Board Wednesday released a report on mortgage data from more than 8,000 lenders under the Home Mortgage Disclosure Act, known as HMDA. The report showed that blacks and Hispanic whites were far more likely to be denied last year for refinancing conventional mortgages, those that aren't insured by the federal government.

The denial rate for blacks was 61%, compared with 51% for Hispanic whites and 32% for non-Hispanic whites. That may partly reflect the larger proportion of minority borrowers who got subprime loans during the housing boom and ended up in homes whose values have crashed.

—Dan Fitzpatrick contributed to this article.

-          Financial Advisor Satisfaction Deemed Most Important of All Factors Measured in Study This Year –

-          Results Demonstrate Client Commitment of LPL Financial Advisors -

Boston, MA – [date] – LPL Financial Corporation (“LPL Financial”), the nation’s largest independent broker-dealer, is proud to announce its number two ranking out of 14 leading financial services companies in the J.D. Power and Associates 2009 U.S. Full Service Investor Satisfaction Study.  The J.D. Power and Associates U.S. Full Service Investor Satisfaction Study measures investor satisfaction with full service investment firms across the country, and is released on an annual basis by J.D. Power and Associates, a global marketing and information company that represents the voice of the customer.

LPL Financial also announced its receipt of the highest scores among all the study’s participants in the area of Financial Advisor Satisfaction.  Financial advisor satisfaction was the most important of six factors on which investor satisfaction was measured, including, in order of importance:  Financial advisor, convenience, investment performance, account offerings, account statements and fees. 

Additionally, LPL Financial achieved scores ranging from “Among the Best” to “Better than Most” – the two highest scores possible – across all of the categories of the study, as shown in the Power Circle ratings on jdpower.com.

Bill Dwyer, president of National Sales and Marketing at LPL Financial, said, “We are delighted with the receipt of the highest scores of all study participants in the area of Financial Advisor Satisfaction, deemed the most important of all factors measured this year by this critical industry study of investor satisfaction.  It is particularly noteworthy that this recognition comes at a time when high-quality, comprehensive support from independent financial advisors is in greater demand by the investing public than ever before.  As such, this positive distinction is entirely due to the efforts of the independent financial advisors we serve, and we congratulate them. 

“In our view, the study results demonstrate the outstanding work of our advisors on behalf of their clients, and serve as a testament to the ongoing strong commitment LPL Financial advisors have to providing unbiased, conflict-free financial advice and solutions to households across their local communities.  We salute the efforts of LPL Financial advisors throughout the country, and we are proud to be partnered closely with them.”

About LPL Financial

LPL Financial is one of the nation’s leading financial services companies and largest independent broker/dealer (based on total revenues as reported in Financial Planning magazine, June 1996-2009). Headquartered in Boston, Charlotte, and San Diego, LPL Financial and its affiliates offer industry-leading technology, training, service, and unbiased research to 12,294

financial advisors, 780 financial institutions, and over 4,000 institutional clearing and technology subscribers. As of year-end 2008, LPL Financial had $233.9 billion in brokerage and advisory assets and revenues of $3.1 billion. LPL Financial and its approximately 2,450 employees serve financial advisors through Independent Advisor Services, supporting financial advisors at all career stages; Institution Services, focusing on the needs of advisors and program managers in banks and credit unions; and Custom Clearing Services, working with broker/dealers at leading financial services companies. For additional information about LPL Financial, visit www.lpl.com.

August 4, 2009
TG-252

Making Home Affordable Program on Pace to Offer Help to Millions of Homeowners
Public Release of Data Provides Transparency on Servicer Performance

WASHINGTON – Today, the Obama Administration released its first monthly Servicer Performance Report detailing the progress to date of the Making Home Affordable (MHA) loan modification program.  The purpose of the report is to document the number of struggling homeowners already helped under the program, provide information on servicer performance and expand transparency around the initiative.

On February 18, the Obama Administration announced its comprehensive plan to stabilize the U.S. housing market.  Two weeks later on March 4, the Administration published detailed program guidelines and authorized servicers to begin modifications immediately.  MHA provides $75 billion for sustainable mortgage modifications through the Home Affordable Modification Program (HAMP). 

MHA has made rapid progress in a few short months.  Servicers covering more than 85 percent of loans in the country are already modifying loans under the program. More than 400,000 modification offers have been extended and more than 230,000 trial modifications have begun.  This pace of modifications puts the program on track to offer assistance to up to 3 to 4 million homeowners over the next three years, our target on February 18.  

Today's report discloses performance on a servicer-by-servicer basis in order to increase transparency for participating institutions.  The data show that servicer performance has been uneven.  The Administration has asked servicers to ramp up implementation to a cumulative 500,000 trial modifications started by November 1, 2009. This would more than double in three months the number of trial modifications started in the first five months of the program.    

The Administration is taking additional steps to improve performance.  On July 9, Treasury Secretary Tim Geithner and Housing and Urban Development Secretary Shaun Donovan wrote the CEOs of participating servicers calling upon them to redouble their efforts to increase staffing, improve borrower response times and streamline the application process.  Senior Administration officials discussed the importance of these steps in a face-to-face meeting with servicer executives on July 28.  The Administration will develop more exacting metrics to measure the quality of borrower experience, such as average borrower wait time for inbound inquiries, completeness and accuracy of information provided applicants, and response time for completed applications.  As an additional protection for borrowers, the Administration has asked the program compliance agent, Freddie Mac, to develop a "second look" process to audit MHA modification applications that have been declined on an ongoing basis.

Making Home Affordable MHA On Pace to Offer Help to Millions of Homeowners 1.      Program On Pace to Help up to 3-4 Million Homeowners Over the Next Three Years More Than 230,000 Trial Modifications Started More Than 85 Percent of Mortgage Market Covered by Participating Servicers 2.      Performance Metrics Aimed at Improving Consistency of Servicer Performance Description of Metrics Used to Measure Servicer Performance Servicer Performance Metrics Show Uneven Progress in Implementation Target of 500,000 Cumulative Trial Modifications Started by November 1, 2009 3.      Public Report Increases MHA Program Transparency

 

1.      Program On Pace to Help up to 3-4 Million Homeowners Over the Next Three Years

• More Than 230,000 Trial Modifications Started

No program has previously attempted to modify so many mortgages at such affordable terms for borrowers.  The Administration is seeing real results – modifications that provide long-term solutions for borrowers.

o    In 2008, 42 percent of modifications by the largest servicers lowered monthly payments.  Under the MHA modification program, 100 percent of borrowers starting trial modifications have had their payments reduced.

• More Than 85 Percent of Mortgage Market Covered by Participating Servicers

o Thirty-eight servicers have signed Servicer Participation Agreements (SPAs) to participate in the program.  These 38 servicers service many types of loans, including Fannie Mae and Freddie Mac loans, private label loans and loans in portfolio.

o Approximately 2300 servicers that service Fannie Mae and Freddie Mac loans are automatically participating in HAMP. 

2.      Performance Metrics Aimed at Improving Consistency of Servicer Performance

• Description of Metrics Used to Measure Servicer Performance

The Administration has established a servicer-by-servicer performance metric to enhance overall program performance.

•  
  •  
    • The report includes the absolute number of trial modifications begun by each servicer. 
    • The report also includes a simple performance metric which measures each servicer's performance relative to an estimate of the servicer's HAMP eligible loans.
      • The performance metric used in the report is trial modification starts as a share of estimated HAMP eligible loans. 
      • Many loans are eligible for HAMP that are not included in the estimated HAMP eligible loans in the public report, including current borrowers in imminent default.
      • This measure of estimated HAMP eligible loans was developed solely to provide a common denominator across which to compare performance of servicers. 

•  
  • Servicer Performance Metrics Show Uneven Progress in Implementation

The metric measuring comparative servicer performance shows uneven ramp-up, and substantial variation in the pace of modifications.  To improve performance, the Administration has asked servicers to commit to starting 500,000 trial modifications by November 1, 2009 and to establishing exacting metrics to monitor servicer specific program performance.

3.      Public Report Increases HAMP Program Transparency

Today's report will provide transparency into program results on a servicer specific basis. 

•  
  • Reports Will Be Issued on a Monthly Basis

The Administration expects to issue reports detailing the progress of modifications under the HAMP program each month. This report will be updated to include additional metrics and results as the program progresses and more data becomes available.

We just returned from a very special real estate conference that we attend every year as part of our continuing education in real estate.  One of the sessions really caught our attention because it was on short sales and how the bank may be able to pursue deficiency judgments against home owners that are in the unfortunate circumstance of losing their homes. 

 Our primary market area comprises of Downey, Whittier, Pico Rivera, South Gate, and a few other cities bordering these areas.  There are many homeowners in these areas that have pursued modifications on their homes to lower their payments and stay in their homes but the majority of the time the offer that the bank proposes to the homeowner is still significantly higher than what the homeowner is able to pay.  It’s at that point that sellers have 2 options.  They can either go into foreclosure, or they can contact an experienced realtor to sell their property in what is called a short sale. 

The short sale is always the better alternative to going into foreclosure because it can save the owners credit rating.  Rather than have a foreclosure on your credit rating for the next 7-10 years, the short sale saves the owner from having that on their credit rating. 

Now the other MAJOR benefit of a short sale, especially here in California is that the homeowner’s lender is unable to pursue a deficiency judgment against the home owner.  California is 1 of 6 states that prevents banks from pursuing these deficiency judgments against the home owners.  This is HUGE for homeowners here in California because that means that a bank CANNOT come after the homeowner in the future demanding payment on the portion of the loss that the bank took. 

We recently closed a short sale in Pico Rivera.  The house sold for $261,000 and the owner owed over $400,000 on the loan.  The bank took a loss of $139,000.  If we were in another state that allowed for banks to pursue a deficiency judgment than the seller could POTENTIALLY/THEORETICALLY be liable to the bank for the deficiency.

We hope this helps you in understanding what short sales and deficiency judgments are.   Once again, California is 1 of 6 states that does not allow banks to pursue these judgments against homeowners which is a HUGE plus for homeowners struggling to keep their homes because it will allow them to bounce back a lot sooner.

If you know of anyone that is in need of our assistance, please send them our way.  We’ll make sure that they are well informed about the process and do our very best to help them through this difficult time. 

The seller was ineligible for a loan modification so his only option to escape foreclosure was to short sale the property to keep his credit clean from the stains of foreclosure.  We had received a cash offer and it was submitted and in review with Indy Mac bank.  Typically when you have an offer submitted to a bank it takes anywhere from 30-90 days to receive an approval.  With most banks a foreclosure on the property can be postponed when an offer has already been submitted, even though an approval hasn’t been received, officially accepting the buyers offer.  In the case with our listing in Huntington Beach Harbor, the seller didn’t hire us soon enough to get the short sale process started, and  there wasn’t enough time for us to receive a short sale approval from Indy Mac Bank.

Indy Mac’s new policy is slightly different from other banks.  Their policy now sates that in order to postpone a foreclosure date, there must already be a short sale approval on the property.  If that approval has not been furnished to the seller yet, than unfortunately the property will proceed with the foreclosure date state on the “Notice of Trustee Sale” letter.  In most instances we are successful at postponing the foreclosure date so that the seller can sell the property and not go into foreclosure but Indy Mac Bank is going to make that very difficult now for some sellers with this new policy of theirs. 

We’re not sure if other banks are going to follow suite with this new policy.  When we questioned Indy Mac on why they are no longer postponing foreclosures when there is an offer in review, they replied saying that it was because many false offers were being submitted just so that the foreclosure would be delayed and not because they were real offers. 

We highly recommend that if you are in a situation where foreclosure is imminent, please call us immediately so we can structure a plan for you to avoid foreclosure.           

We have been running into road blocks with a couple of the sales that we currently have going on and  we thought it would be a good idea to inform our readers about what’s currently going on with homes that are illegally converted. 

We have a pending sale in a nice area of La Mirada.  Everything was going smoothly up until we got a call from a city inspector telling us that the converted garage and the laundry room must be demolished and put back to its original state before the close of escrow.  This has created a very difficult situation for a few reasons

1.       Time – this property is a short sale and the home owner’s bank has given us less than a 30 day window to close the transaction.  If we do not close within the window that has been given to us, the property will go into foreclosure and tarnish the credit of the home owner for the next 7 years. 

2.       Money – Someone is going to have to pay for the cost of the demo work.  The seller definitely doesn’t want to pay because they most likely have no money.  The entire reason they are having to short sale the property is because they are in financial hardship and can no longer afford the property.  In addition to that, they are not netting anything on the sale of their home because they are upside down with negative equity.  The buyer doesn’t want to pay for the work, they already have closing costs to pay for the purchase of the home, so of courses they are not going to offer to pay for the demolition.  The real estate agent can pay for the work with the commission that is supposed to be earned from the deal, but commissions to agents are very minimal since home values have gone down and no one wants to work for free. 

3.       The Buyers Lender – Many buyers are getting the money they need to buy a home through FHA financing.  FHA financing is appealing to buyers because all they need to put as a down payment to purchase a home is 3.5% of the purchase price.  The problem with FHA financing is that in cases where there are conversions on properties, FHA will only lend the buyer money if all those conversions are corrected, so that the property is back to its original state.  In some cases correcting the conversion may be as simple as removing a wall.  In other cases correcting the conversion may entail removing electrical work, sinks, entire bathrooms, kitchens, the list can go on.  Once everything is returned to its original state the buyers lending institution will require the appraiser to go back out to the property to take pictures of the corrected work, verifying that everything has been brought back to its original state. 

The same is true for another home we currently have in escrow in the city of Pico Rivera.  The property was not even converted by the current owners but by the previous owners.  In this case the city has not required the home to be returned to its original state but the Buyers lender has.  Before they would lend the money needed for the buyer to purchase the home, they presented a large list of corrections that needed to be done on the property. 

It has only been recently that we have seen this change in guidelines.  Back when subprime loans were dominating the market, these issues never presented a problem.  Many time these illegal conversion were overlooked.  But now many home owners would be very wise not to illegally create or destroy bedrooms, bathrooms, and kitchens. 

Pico Rivera, and La Mirada are only 2 of the many cities that we work in the Los Angeles area.  Many of the rules that apply to these 2 cities also apply to the many surrounding cities as well.

If you or anyone that you know is planning to do any kind of work on your property, please consult us first so we can advise you on whether or not it would be a good move regarding the investment apect of your home.   

Fireworks Shows in Los Angeles County

Bees:  There are no govenment agencies that provide bee control services on private property in the city of Downey.  Residents should refer to local yellow pages under "Pest Control" to find a licnesed pest control company.  If a bee swarm or hive is located on the street, side walk, or other public property, please notify the city of Downey maintenance services division at 562-904-7194.  For more information about bees please contact the agicultural commissioner/weights and measures office at 11012 S. Garfield Ave, South Gate at 562-940-8916, or visit their website at http://acwm.co.la.ca.us/.

Mosquitoes:  Downey residents are advised to maintain pools and spa's, avoid overwatering flowerbeds and lawns, and eliminate sources of standing water on their properties.  For information and assistance with mosquitoe control, contact the greater Los Angeles county vector control district, located at 12545 Florence Ave, in Santa Fe Springs, at 562-944-9656, or visit their website at www.glacvcd.org. 

Rodents:  The city of Downey no longer provides free rodent control products.  Home owners may pick up a bag containing 6 packets of redent poison from the Los Angeles county department of health services, environmental health division, located at 12440 Imperial Hwy, suite 515 in Norwalk.  Home owners will be allowed 1 bag every 6 months and may be required to show valid picture ID.  Please call 562-345-6830 for more information.  Home owners may also request a free rodent survey/inspection of their property by vector management inspectors by calling the administrative headcorters in Baldwin Park at 626-430-5450.  For more information please visit their website at http://publichealth.LaCounty.gov/eh/pets.htm.

"We're less than four months into it, and all the tax credits authorized are gone, or practically gone," said Tim Coyle, a senior VP with the California Building Industry Association (CBIA).

The program launched in March and by June 3 nearly $24 million in tax credit certificates had already been issued, according to the state's Franchise Tax Board.

That leaves nearly $76 million in credit available - but there are already numerous claims on that money. In fact, if all the submitted applications are approved, only $17.5 million will be left in the fund. And it has a run rate of about $10 million per week.

"The program is working better than intended," said Coyle. "It's really pushing people off the fence."

Learn how it works and read the rest of the article.......Click Here

There have been many people asking us about the new rescue plan that the president is putting in place to help home owners stay in their homes.  Below is some helpful information that should help some home owners...Just keep in mind that people still need to be able to document their income in order to qualify for these modification programs.  Many people in Downey, Lakewood, Paramount, Whittier, South Gate, and the surrounding cities including North Orange county cities such as Huntington Beach, bought homes with STATED income loans.  Many times STATED income loans were used because buyers couldn't document their income using standard methods like pay stubs and taxes.  People were sometime payed "Under the table Income" or simply used their self employment status to deduct many of their expenses allowing them to pay less taxes but unfortunately hindering them when qualifying for "FULL DOCUMENTATION" loans...Although these programs may help some families, they won't  help all of them and that is the reason why we are still listing and selling many Short Sales in this market. 

We do recommend attempting to try to modify if you meet the criteria below and we truly understand how difficult it is for families to unwillingly lose their homes in these difficult times.  Just know that we are here to help families escape that reality of foreclosure.  With Short Sales, families can save their credit from the damages of foreclosure be able to buy again in the near future.  We do not recommend paying for the service of a modification.  Many services will take your money and offer no guarantees of successful outcome.  You can contact the bank directly and they can be of service to you.  If you ever need anything or have any questions about your home, please contact us.  You can reach us at (562) 883-1003 or (562) 746-3811.

Read below for more info on the loan modification process...

Pres. Obama's foreclosure prevention program will help some 9 million struggling homeowners keep their homes. The financial fix requires companies to help borrowers by adjusting their loans so that their monthly house notes do not exceed more than 31% of a borrowers monthly gross income. And, if you are a borrower who hasn't missed a payment, you may be eligible to refinance into a lower cost loan even if you have little or no equity.

For those of you that want have the county do an assesment review of your property taxes because of declines in property values, we are providing the links to print the assesment evaluation document for Orange County and Los Angeles County. 

It's very simple and the instructions are on the page on how to properly fill out the document.

Click on the link below to be directed to the PDF for the Orange County property assesment review.

Orange County

Click on the link below to be directed to the PDF for the Los Angeles County property assesment review.

Los Angeles (Click on "Application for Decline in Value Reassessment").

On  April 2, C.A.R. will launched a new program designed to provide peace of mind to first-time buyers who are hesitant to enter the housing market due to concerns about potential job loss, and subsequently being unable to meet their monthly mortgage obligations.

Through the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer also can participate in the program, for a reduced monthly benefit of $750 per month for up to six months in the event of a job loss. Program benefits also include coverage for accidental disability and a $10,000 death benefit. C.A.R.’s Housing Affordability Fund is dedicating $1 million to the program this year, and estimates that as many as 3,000 families will benefit from the program throughout 2009.

To qualify for the Mortgage Protection Program, applicants must:
. Be a first-time home buyer – someone who has not owned a home in the last three years
. Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
. Use a California REALTOR® in the transaction
. Purchase the property in California
. Be a W-2 employee (cannot be self-employed or military personnel)

First-time home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®. For applications and other information on this exciting new program, go to www.car.org/aboutus/hafmainpage/ or contact Monica Rodriguez at (213) 739-8380 or monicar@car.org.

The Mortgage Protection Program is a proactive approach by C.A.R. to address consumers’ concerns about the real estate market and their ability to make their mortgage payments should they loose their jobs. I encourage you to take full advantage of this new program by sharing information about the C.A.R.H.A.F. Mortgage Protection Program with your clients. There is no cost to either you or your clients to participate.

Sincerely,

James Liptak
2009 C.A.R. President