Good News for Buyers

The federal government recently passed the American Recovery and Reinvestment Act of 2009 (ARRA), aka Stimulus Plan, Part II. The ARRA provides that conforming loan limits for FHA loans and for loans purchased by Fannie Mae and Freddie Mac shall remain at the higher levels established for 2008 for loans funded during the calendar year 2009. Here are some of the limits in our area:

El Dorado	$580,000
Fresno	$381,250
Madera	$425,000
Placer	$580,000
Sacramento	$580,000
San Joaquin	$488,750
Santa Clara	$729,750
Solano	$557,500
Stanislaus	$423,750

For a complete list of all California Counties go to: https://entp.hud.gov/idapp/html/hicost1.cfm 

First time buyers are eligible for an $8000 Federal income tax credit for home purchased from Jan1 2009 to December 31, 2009. 

New homes have a state tax credit of $10,000 in 2009.

Stimulus and foreclosures

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

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

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

Facts of life in the real estate crisis:

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. Foreclosure and bankruptcy are the worst things a homeowner can do to his credit.
7. Short Sales may effect credit less adversely than a foreclosure or bankruptcy will.
8. 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®
   
9. 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.
10. 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. 
11. There are no easy fixes for real estate and other financial problems.
12. Only an experienced REALTOR®  or appraiser should estimate the value of your home.
13. 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

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

A piece of President Obama’s stimulus package contains a potential game changer for homeowners with Alt-A adjustable rate mortgages or others who are in trouble.  The plan would be to create a  ”bad bank” that would serve as a collection point for troubled mortgages.  These mortgages would be re-negotiated and then sold back to private banks for loan servicing. This would lessen foreclosures and their toxic effect on neighborhood values. 

 

An example of how this worked successfully was the FDIC’s take over of Indy Mac last summer.  The FDIC adjusted the mortgages so that troubled homeowners were able to remain in their homes and had lower payments, interest rates, or balance owing.  This stemmed the tide of foreclosure for these individuals. 

Indy Mac was then sold back to investors.  Federal insurance and guarantees were given to the new owners.  

The problem for the Bush Administration, and now the Obama administration, in implementing the “bad bank” concept has been how to value the troubled mortgages.  Short of nationalizing all banks with adjustable rate mortgages some other pricing mechanism needs to be agreed upon to handle these potential toxic assets. 

One extreme idea is to have the FDIC take over and run all US banks. The liability of this mechanism is that the government could end up owning all failing banks forever.  

If you live in the Sacramento Region how does this apply to you? If past performance is an indicator, the foreclose rate is about to sky rocket for those who have adjustable rate mortgages or who have lost a job or seen their hours cut.  If you live in a better neighborhood such as Folsom,  Fair Oaks,  Roseville,  Arden Park,  Sacramento along the River, Granite Bay or El Dorado Hills you will see the beginning of a foreclosure wave that will last for years.  This new wave will be caused by adjustable rate Alt-A and other mortgages which adjust from 2009-2012.  

 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.

 

 

  

 

 

Avoid Foreclosure Now

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.