Stimulus and foreclosures
February 9, 2009
The current economic crisis is the result of problems in the nation’s housing markets. Efforts to boost the overall economy will be wholly ineffective if the Economic Stimulus bill that goes to the President does not include provisions focused on stabilizing real estate markets.
Provisions hoped for in the final bill would include:
A $15,000 home buyer tax credit that was proposed by Senators Isakson, Lieberman and Dodd.
The Lieberman/Isakson Amendment was included in the senate version of the Economic Stimulus Bill by a unanimous voice vote. This amendment would provide a Tax Credit to all home buyers at the rate of 10% of the sales price up to a limit of $15,000. The credit would be available for a one year period to all purchasers of primary residences.
Permanent FHA, Fannie Mae and Freddie Mac loan limits that match the levels enacted in 2008.
FHA should insure single-family home mortgages up to $271,050 in low cost areas and up to a maximum of $625,500 in high cost areas permanently.
Increased resources for foreclosure mitigation efforts to stem the flood of foreclosures.
Not in the stimulus package but under consideration by the Obama administration are two proposals which deal with toxic mortgages. One is to rope off the toxic mortgages from those that are performing and sell them to private investors. The other is to create a “bad bank” which would function like the FDIC takeover of Indy Mac. These proposals each work in different ways toward a negotiated solution for homeowners real estate problems. The selling of these assets to private investors, along with guarantees, is said to be the Obama Administration’s favored remedy.
The senate expects to debate Amendment 353, a proposal by Senator John Ensign (R-NV) that would provide 30 year fixed financing at a rate of about 4%, for anyone purchasing a primary residence.
Insider familiar with the final bill are saying that while the conference report remains to be finalized, it appears as though the recovery bill will include an $8,000 tax credit for first-time home buyers. Current law only provides a $7,500 incentive, which must be paid back.
The Sacramento region would gain from these proposals. While nothing is an immediate fix communities like Roseville, Granite Bay, Folsom, Fair Oaks, East Sacramento, The Fab Forties, Land Park and Granite Bay. would benefit. Why? These communities are less impacted and stand to gain from loan modification and short sales.
Solutions for 2009 and Beyond:
I will provide homeowners a complimentary book entitled, “Foreclosure Solutions- A Homeowners Handbook. Alternatives, Solutions, & Education.”
Topics in the book include:
- Do’s and Dont’s, Basic Advice you need to know.
- Keeping Your Home, Six Strategies to Save Your Home.
- Foreclosure Avoidance, Four Strategies to Avoid Foreclosure.
- Consequences of Foreclosure.
- Deficiencies per IRS.
- Using Services of a Pro
Foreclosure Avoidance Facts
February 4, 2009
- By the time the federal government organizes a”bad bank” to negotiate with defaulted homeowners thousands, if not millions, of foreclosures will have taken place. Many private banks are willing to talk now. They do not want more foreclosures. Call your bank now, if you are in trouble, and see if they will lower your interest rates, extend the term of your loan, or consider a principal reduction.
- Most homeowners facing foreclosure have never called a REALTOR® or their bank. REALTORS® give advice. If a consumer does a short sale all REALTOR® commissions are paid by the seller’s lender who approves the balance owing. In some cases the balance owing may be forgiven. Find an agent familiar with short sales and foreclosures for advice. Also contact an accountant (CPA) or tax expert. The IRS may be of help. Talk to an attorney specializing in bankruptcy. He can explain Chapter 13 and/or Chapter 7 Bankruptcy so that you know your options.
- In most cases, getting a loan is not a “bail out” for a defaulted adjustable loan. FHA Secure or a streamlined FHA refinance may work. Call a lender who is FHA approved, not your local bank, to find out if this a solution. Most loans require equity of at least 3% and sufficient income to repay the loan. If someone offers you a loan that sounds too good to be true it probably is. Avoid the scams.
- Investors with lots of cash are buying up homes on the courthouse steps. These properties are then fixed up and become rentals. The investors may also flip them for quick profit. That’s fine, it is business.
- Some scam artists attempt to get control of properties on a Quit Claim Deed or an All Inclusive Deed of Trust without formally assuming your loan. This is not legal in California.
- Foreclosure and bankruptcy are the worst things a homeowner can do to his credit.
- Short Sales may effect credit less adversely than a foreclosure or bankruptcy will.
- Legal advise should come from a Lawyer. Tax information should come from a CPA. Advise on short sales and pricing should come from a REALTOR®
- Confronting the situation and talking to a lawyer, a CPA, and/or REALTOR® gives homeowners a chance to reach the best possible outcome for their situation.
- Lots of individuals are trying to cash in on the misfortune of others. Don’t give organizations on TV or radio money to solve problems not suggested by a professional. Do what you can yourself with direct communication to credit card companies and banks. Don’t wait, call now.
- There are no easy fixes for real estate and other financial problems.
- Only an experienced REALTOR® or appraiser should estimate the value of your home.
- Current foreclosures are primarily a result of Alt-A loans adjusting and/or the recession. Now foreclosures are happening in better neighborhoods including: Fair Oaks, Folsom, Granite Bay, Roseville, Rocklin, El Dorado Hills, Mid-Town Sacramento, East Sacramento and the Pocket area.
Solutions for 2009 and Beyond:
I will provide homeowners a complimentary book entitled, “Foreclosure Solutions- A Homeowners Handbook. Alternatives, Solutions, & Education.”
Topics in the book include:
- Do’s and Dont’s, Basic Advice you need to know.
- Keeping Your Home, Six Strategies to Save Your Home.
- Foreclosure Avoidance, Four Strategies to Avoid Foreclosure.
- Consequences of Foreclosure.
- Deficiencies per IRS.
- Using Services of a Pro
Foreclosure help
February 4, 2009
Avoid Foreclosure Now
February 1, 2009
- Name Loren Ransier
- Company RE/MAX Gold
- E-mail LRansier@ Gmail.com
- Website www.sacramento.me
- Cell Phone (916) 439-3588
- Fax (916) 357-9940
- Why Use Loren Ransier
- I have been a full time agent in the greater Sacramento area since 1992. I worked in the slow Sacramento residential real estate market in the 1990’s. I understand the personal torment of foreclosures and short sales. I am committed to helping homeowners mitigate personal damage from their Real Estate problems which have been brought about as a result of adjustable rate mortgages and/or other personal situations. Call me for a complimentary book entitled “Foreclosure Solutions – A Homeowners Handbook”: Chapter 1 Do’s & Don’ts, Basic Advice you need to know. Chapter 2 Keeping your Home Six Strategies to Save your home. Chapter 3 Foreclosure Avoidance Four strategies to avoid foreclosure. Chapter 4 Consequences of foreclosure. Chapter 5 Deficiencies per IRS. Chapter 6 Using Services of a Pro. Foreclosure or Short Sale may not be your only alternative. Call Loren Ransier (916) 439 -3588 or Visit www.sacramento.me.
