Thursday, December 22, 2011
California Foreclosure Activity Rises in October
Statewide filings up 7 percent from September; Rate second highest
Foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 55,312 California properties in October, a 7 percent increase from September, but 17 percent below the level reported for October 2010, according to the latest RealtyTrac® U.S. Foreclosure Market Report.
The Golden State maintained its position as the state with the second highest foreclosure rate, reporting one in every 243 California housing units with a foreclosure filing in October.
San Bruno California continues to lead the nation in terms of total properties with foreclosure filings by a large margin. Second ranked Florida reported 33,073 properties with foreclosure filings during the month. Third place was Michigan, where 16,106 properties with foreclosure filings were reported. Illinois had the fourth highest total, reporting 12,522 properties with foreclosure filings while Arizona took fifth place, tallying 10,626 properties with foreclosure filings.
The remaining states that make up the nation’s top 10 in October include Georgia (10,010), Texas (9,845), Ohio (8,691), Nevada (6,307) and Colorado (4,729). The top 10 accounted for 72 percent of the nation’s total foreclosure activity for the month.
San Joaquin County posts top foreclosure rate in the state for October
One in every 143 housing units in San Joaquin County had a foreclosure filing in October — 3.9 times the national average and 1.7 times the state average — the highest foreclosure rate of all California counties for the month. Calaveras and Stanislaus counties had the second highest rate of one in every 148 housing units with a foreclosure filing during the month — 3.8 times the national average and 1.7 times the state average. Yuba and Solano counties had the fourth highest rate of one in every 150 housing units with a foreclosure filing during the month — 3.8 times the national average and 1.6 times the state average.
Southern California stays atop the foreclosure heap in October
Five Southern California counties topped the list for highest foreclosure totals in the state for October. Los Angeles County continued to lead all counties by a large margin, reporting 11,498 properties with foreclosure filings for the month. Riverside County remained second highest, reporting 4,949 properties with foreclosure filings. San Bernardino County was third once again, reporting 4,476 properties with foreclosure filings. Fourth highest was Orange County, recording 3,866 properties with foreclosure filings. San Diego County was fifth highest, tallying 3,790 properties with foreclosure filings for the month.
State the nation’s largest contributor to total foreclosure activity in October
California accounted for 24 percent of the 230,678 properties with foreclosure filings reported nationwide in October. Total U.S. activity increased by more than 7 percent from September, but was down nearly 31 percent from the level reported in October 2010. One in every 563 U.S. housing units received a foreclosure filing during the month.
“The October foreclosure numbers continue to show strong signs that foreclosure activity is coming out of the rain delay we’ve been in for the past year as lenders corrected foreclosure paperwork and processing problems,” said James Saccacio, chief executive officer of RealtyTrac. “However, recent state court rulings and new state laws keep changing the rules of the foreclosure game on the fly, creating more uncertainty in the housing market and threatening to prolong the road to a robust real estate recovery.”
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Tuesday, November 29, 2011
Take action now to turn it around in 2012
Recent economic upheaval has taken a hefty toll. Looking forward to 2012, it’s impossible to know what’s next and the kind of an impact that an upturn or a downturn at the national level stands to have on your family’s finances.
Regardless of what happens in Washington or on Wall Street, two things are very clear: you are not alone and now is the time to prepare for a new normal.
With a national epidemic of unemployment or underemployment, and 25 percent of the homeowners in the country owing more on their Ingleside Terrace Home than they could net for it in today’s market, homeownership for many has become a financial liability. Not being able to make payments on a home that you can’t afford to sell feels like an awful trap, but the fact is, there are solutions—and foreclosing on your mortgage is not one of them.
Loan modification is an option for many and banks are increasingly willing to negotiate short sales. In many cases, they’re offering sizable financial incentives to help financially strapped homeowners to get a fresh start on their lives.
As real estate professional who has achieved the Certified Distressed Property Expert (CDPE) designation, it is my mission to give homeowners the gift of a fresh start.
Contact me TODAY and let’s get started.
info@clarinrealty.com
Friday, October 21, 2011
Mortgages After a Rejection
JUST because your mortgage application has been rejected doesn’t mean you won’t eventually get funding.
Some borrowers succeed on the second or third attempt, usually with a different mortgage professional, and often several months later, after they have saved more money for a larger down payment or improved their credit score.
But before you retry, “you just have to look and see the reasons that it’s turned down,” and address these issues, said Marisol Torruella, a loan originator with the New York Municipal Credit Union, referring to the original application.
The Equal Credit Opportunities Act requires lenders to give loan applicants specific reasons in writing, within 30 days of their decision. If it’s based on a problem in your credit report, the lender must tell you the name and address of the credit agency that provided the information.
You could also talk to the loan officer who turned you down to see how close you came to being approved. Sometimes the gap is small, and could be bridged with, say, a few thousand dollars more for the down payment, or another home appraisal.
Still, it may be worthwhile to shop around for other lenders. You may want to go to a mortgage broker or an online network like LendingTree or Zillow’s Mortgage Marketplace. An experienced broker or banker can discuss alternative products and loans available from the Federal Housing Administration, which has less stringent requirements, though applicants may have to take out mortgage insurance if their down payment is low.
“There still is a robust level of competition in the industry,” said Michael Fratantoni, the vice president for research and economics at the Mortgage Bankers Association.
A credit union might be a better bet for some. Credit union loan committees may permit better deals for longtime members; they might also modify loan terms for borrowers they already know, Ms. Torruella said. “If we are already holding your mortgage,” she added, “we will work with you.”
But if you’re a first-time buyer, you may need to scale back your aspirations. According to Ms. Torruella, one reason people get turned down is that they try to buy more property than they can afford based on current incomes.
Borrowing from a relative or friend, or selling another holding, might help applicants come up with a larger down payment and afford their dream home.
Applicants should also look at ways to strengthen their financial picture.
“Buying an Ingleside Terrace Home is a long-term goal,” said Erin Lantz, the director of the Zillow Mortgage Marketplace. “It’s worth spending the time to invest and pay your bills on time.” Any errors found on your credit report should also be corrected, she said.
If your credit is less than stellar, “you have to re-establish 12 months’ of good credit, good payment terms,” said Gary DeTrano, a mortgage broker at the Walden Group in Mineola, N.Y. If your FICO score, for example, is 20 or 30 points below a bank’s requirement, you may be able to inch it up by paying down your credit-card balances, he pointed out. Just don’t use up the money you need for a down payment or closing costs.
Even those applicants with steady income and good credit may not qualify today if they have big expenses, Mr. DeTrano said, like loans to help pay for college for their children.
If all else fails, he said, borrowers might want to consider asking someone with a strong financial track record to co-sign the loan.
Ms. Lantz, meanwhile, says those looking to apply for a mortgage should take the time to learn about all the available loan options. She noted that a recent survey of prospective buyers conducted by Zillow found that 42 percent were unfamiliar with F.H.A. loan qualifications.
For more information visit at noreleendemesa.com
Friday, October 7, 2011
Freddie and Fannie Reject Debt Relief
Home values have fallen so much in Arizona that almost half the people with mortgages there owe more than their homes are worth. So when federal money became available to help stem the tide of foreclosures, the state flagged that group for help.
If banks would forgive some of a homeowners’ mortgage debt, the state said it would pay half, up to $50,000 of a $100,000 loan reduction. Despite the generous terms, most banks balked.
Only three homeowners have been approved for debt reduction since the program began in September 2010. A major obstacle has been that the two largest mortgage guarantors, Fannie Mae and Freddie Mac, will not participate — in Arizona or elsewhere. No loans are eligible for the state’s program if they were bought and held or securitized by the two companies, which are now under government control and guarantee more than 70 percent of the country’s Ingleside Terrace Home loans.
“It is extremely difficult for the principal reduction program to be successful” when Fannie and Freddie opt out, said Shaun Rieve, a spokesman for the Arizona Department of Housing.
The companies’ policy against debt forgiveness, or principal reduction, has blocked widespread use of what many have come to believe is an indispensable tool for fixing the housing problem. The state attorneys general have been insisting that debt forgiveness be a part of the multibillion-dollar settlement they are negotiating with big banks over faulty mortgage practices.
Smaller investors and companies that service home loans have stepped up debt forgiveness as well.
Not so Edward J. DeMarco, who as acting director of the Federal Housing Finance Agency oversees Fannie and Freddie. Even though he recently signaled that he might make it easier for homeowners to refinance into more favorable loans, he has held his ground on debt relief. Fannie and Freddie say reducing the principal is bad for business, and as a result bad for taxpayers.
Critics counter that banks and investors have benefited from the government response to the housing collapse while borrowers have largely been left to sink. Last week the inspector general of the Federal Housing Finance Agency said that Freddie Mac had not pursued Bank of America aggressively for compensation for bad loans, despite warnings from a senior staff member.
“It’s sinful, is the word I would use, that they won’t do this,” said John Taylor, president of the National Community Reinvestment Corporation, referring to debt forgiveness. “And the only reason they won’t is they don’t want to realize the red ink that’s already on their books.” They are delaying taking inevitable losses on shaky loans.
White House officials say that although taxpayers essentially own Fannie and Freddie, the administration lacks authority to require Mr. DeMarco to comply with its policies, which encourage principal reduction through a handful of programs. The Federal Housing Administration and the Veterans Administration do not allow principal reduction on their loans either.
Large lenders have long resisted debt forgiveness because of fears that it creates a moral hazard, meaning it could encourage borrowers to take out risky loans in the future because the consequences would not be so bad, or to default to qualify for principal reduction. They argue that other types of loan modifications achieve the same goal.
Proponents of debt forgiveness argue that the failure to reduce debt is hurting the economy, postponing inevitable losses and costing more in the long run. While 28 percent of all loans that are modified go into default again within a year, loan modifications involving principal reduction are more successful. In the latest sign that debt forgiveness might make financial sense to some on the lender side, the nation’s second-largest mortgage insurance company, PMI Group, has found a way around Fannie and Freddie’s policy. PMI, which shares the credit risk in many Fannie and Freddie loans, will pay some underwater homeowners, those who owe more than their home is worth, if they make prompt payments for several years, a de facto principal reduction.
While the company would not disclose what percentage of the principal was covered, a spokesman for the Loan Value Group, which administers the program for PMI, said that on average it was 5 to 7 percent of the loan amount but could be as much as 30 percent.
Fannie and Freddie’s rejection of principal reduction may simply be postponing losses that will occur anyway. Sharon Wells, a retired real estate agent or San Francisco Realtor who lives on Social Security, said the modification by Chase Bank of her Fannie Mae mortgage led to an increase in the principal rather than a reduction, even though she already owed about 30 percent more than her home, near Phoenix, was worth.
Ms. Wells, 66, said she had heart trouble and had outlived her doctor’s prognosis, so there was virtually no chance that she would live to pay off the new 40-year term, or that the house would regain its previous value before her death, meaning the lenders would ultimately take the loss anyway. She had been preparing to sell her home and downsize when the market crashed.
“The logical, pragmatic thing, the thing that would have helped this country the most, would have been to write this loan down to a realistic number so we could have the normal buying and selling of homes,” she said.
But Fannie and Freddie maintain that deciding who merits principal reduction raises concerns about fairness. They argue that if future lenders believe there is a chance that borrowers will not have to repay the entire amount, they will price that risk into their loans, raising costs for everyone. The companies say making monthly payments affordable is achieved equally well by forbearance, which allows part of the principal to be subtracted from the calculation of payments and instead tacked on to the end of the mortgage. “We’re not sure what is gained by giving up the right to collect that principal after the forbearance period ends and the borrower has regained financial footing,” said Brad German, a spokesman for Freddie Mac.
But proponents of debt forgiveness say that forbearance does little to increase a borrower’s willingness to pay.
“The banks are trying to shoehorn an affordability fix into a negative equity problem,” said Frank Pallotta, a managing partner of the Loan Value Group, which runs the homeowner incentive program used by PMI. “About 35 percent of all defaults are at least in part strategic,” he said, meaning that even if a financial mishap like job loss is behind a homeowner’s decision to stop paying, being underwater is a factor.
About one in five homeowners with a mortgage is underwater, and the total amount of negative equity is estimated at $700 billion to $800 billion. While many of those borrowers are coping with self-inflicted wounds, the problem is not limited to subprime loans.
Among mortgages backed by Fannie and Freddie, a vast majority of which are prime, the percentage of underwater homeowners is virtually the same as the percentage among all mortgages. The scope of the problem has led to calls for an across-the-board write-down, a solution that is expensive, impractical and unnecessary, says Mark Zandi, an economist at Moody’s Analytics.
“I don’t think the problem is as deep as people think,” Mr. Zandi said. Just enough principal reduction is needed to shrink the share of foreclosed homes on the market, which would allow prices to rise, he said. Homeowners would be less likely to default if prices were increasing, he added. Servicers providing principal reduction have devised ways to limit moral hazard. In Arizona, the program was restricted to homeowners with moderate incomes who had resisted taking out equity loans in the boom. Ocwen Loan Servicing, whose loan modifications top the national average, intensively evaluates the homeowner’s budget before determining if principal reduction would result in a net gain for the investor, who otherwise might face a steeper loss in foreclosure.
After a successful trial program, Ocwen, based in Atlanta, has also begun offering shared appreciation plans, in which part of a borrower’s principal is forgiven, but if the home is eventually sold at a profit, the owner must share that profit with the lender.
As for moral hazard, Steve Bailey, chief servicing officer at PennyMac, a California company that bought shaky loans, said that failure to cut principal was to blame, not the other way around.
“A loan that is modified and left at 200 percent loan-to-value invites the moral hazard,” he said. “You’re telling a person that they need to live in this house that’s severely underwater, paying more for housing than they need to, and looking around their neighborhood at homes that have gone through foreclosure and are available for much less.”
To know more about this visit at clarinrealty.com
Thursday, October 6, 2011
Wednesday, October 5, 2011
Monday, September 26, 2011
Thursday, September 22, 2011
California Foreclosure Activity Continues to Decline in July
Statewide filings down 7 percent from April, 28 percent from a year ago
Foreclosure filings — default notices, scheduled auctions and bank repossessions — rose for the second straight month in California, where 56,193 properties were reported in July, a 4 percent increase from June but 16 percent below the level reported for July 2010, according to the latest RealtyTrac® U.S. Foreclosure Market Report. This is the 20th straight monthly decline in California foreclosure activity year-over-year.
The Golden State also saw its foreclosure rate go up a notch in the national rankings, moving into second position at a rate of one in every 239 California housing units with a foreclosure filing in July.
California more than doubled the total foreclosure activity reported by second place Florida, where 22,377 properties with foreclosure filings were tallied during the month. Ranking a distant third was Georgia, where 11,461 properties with foreclosure filings were reported. Fourth highest total was in Michigan once again, reporting 10,894 properties with foreclosure filings while Illinois took fifth place, tallying 10,627 properties with foreclosure filings.
The remaining states that make up the nation’s top 10 in July include Texas (10,571), Arizona (10,098), Nevada (9,930), Ohio (8,376) and Wisconsin (4,534). The top 10 accounted for 73 percent of the nation’s total foreclosure activity for the month.
San Joaquin County posts top foreclosure rate in the state for July
One in every 124 housing units in San Joaquin County received a foreclosure filing in July — 4.9 times the national average and 1.9 times the state average — the highest foreclosure rate of all California counties for the month. Yuba County had the second highest rate of one in every 132 housing units with a foreclosure filing during the month — 4.6 times the national average and 1.8 times the state average. Stanislaus and Solano counties tied for third highest rate of one in every 140 housing units with a foreclosure filing during the month — 4.4 times the national average and 1.7 times the state average.
Southern California stays atop the foreclosure heap in July
Five Southern California counties topped the list for highest foreclosure totals in the state for July. Los Angeles County continued to far outdistance the nearest competitor, reporting 11,429 properties with foreclosure filings for the month. Riverside County remained second highest, reporting 5,460 properties with foreclosure filings. San Bernardino County was third once again, reporting 4,399 properties with foreclosure filings. Fourth highest was San Diego County, where 3,795 properties with foreclosure filings. Orange County was fifth highest once again, tallying 3,405 properties with foreclosure filings for the month.
State the nation’s largest contributor to total foreclosure activity in May
California accounted for 26 percent of the 212,764 properties with foreclosure filings reported nationwide in July. Total U.S. activity decreased by more than 4 percent from June, and was down nearly 35 percent from the level reported in July 2010. One in every 611 U.S. housing units received a foreclosure filing during the month.
“July foreclosure activity dropped 35 percent from a year ago, marking the 10th straight month of year-over-year decreases in foreclosure activity and the lowest monthly total since November 2007,” said James J. Saccacio, chief executive officer of RealtyTrac. “This string of decreases was initially triggered by the robo-signing controversy back in October 2010, which forced lenders to substantially slow the pace of foreclosing, but the downward trend in foreclosure activity has now taken on a life of its own. It appears that the foreclosure processing delays, combined with the smorgasbord of national and state-level foreclosure prevention efforts — including loan modifications, lender-borrower mediations and mortgage payment assistance for the unemployed — may be allowing more distressed Ingleside Terrace Home owners to stave off foreclosure.
“Unfortunately, the falloff in foreclosures is not based on a robust recovery in the housing market but on short-term interventions and delays that will extend the current housing market woes into 2012 and beyond,” Saccacio continued. “A stabilizing economy and improving job market are the long-term keys to a housing market recovery."
Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the month — broken out by type of filing by state, county and metropolitan statistical area. Some foreclosure filings entered into the database during the month may have been recorded in previous months. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is received for a property during the month, only the most recent filing is counted in the report. The report also checks if the same type of document was filed against a property in a previous month. If so, and if that previous filing occurred within the estimated foreclosure timeframe for the state the property is in, the report does not count the property in the current month.
For further information read our blog noreleen25.wordpress.com
Thursday, September 15, 2011
Foreclosure Starts Driven Higher by Bank of America
Foreclosure filings and sales increase throughout most of our coverage are in August. Foreclosure starts jumped significantly, reversing what had been a declining trend over the past several months. Investors bought more properties on the courthouse steps in August than in July everywhere except in Washington. The number of properties Sold Back to Bank jumped significantly in Oregon, and also rose in California and Nevada.
Foreclosure starts (the first notice filed, either a Notice of Default or Notice of Trustee Sale depending on the state) rose in every state. This appears to have been primarily driven by Bank of America and related entities, where we saw an overall 116 percent increase from July to August. Wells Fargo and US Bank also saw an increases in foreclosure start filings, while filings by JP Morgan Chase and Citibank were essentially flat.
"Bank of America appears to be primarily responsible for the surge in foreclosure starts this month," says Sean O'Toole, Founder and CEO of ForeclosureRadar.com. "Since their average time to foreclose has recently increased to more than a year, it is unclear that these foreclosure starts will lead to an increase in foreclosure sales anytime soon."
Notice of Default filings increased 69.5 percent to the highest level in a year. Notice of Trustee Sale filings were up more moderately, rising 6.0 percent month-over-month, but down 23.6 percent year-over-year. Cancellations were nearly flat, up just 1.9 percent from July. Activity on the courthouse steps increased in August. Properties Sold Back to Bank (REO) increased 12.3 percent from the prior month. Properties Sold to 3rd Parties rose 9.9 percent month-over-month, and 10.8 percent year-over-year. Time to Foreclose increased to 333 days in August, which is 49 days longer than a year ago.
http://www.foreclosureradar.com/california-foreclosures "
Monday, September 12, 2011
Noreleen at Clarin Realty can help
"I will be forever grateful to Noreleen for helping me short sale my property. I really thought I had no other option but to foreclose and it was scaring me to death. My bank just refused to work with me and the hours I'd spend on the phone with them got me nowhere. Just when I was about to give up, I was referred to Noreleen and she was so kind, knowledgable and reassured me that we can get my property sold. She guided me through all the steps of the short sale and explained everything to me so it was easy to understand. During the process she always kept me updated on the status with the bank and made sure everything was taken care of with my best interests in mind. I literally did not have to worry about a thing. Noreleen is a professional and can help you when you think you have no other options. She will work with you to come up with the best plan possible for your situation. She is someone that you can definitely put your full confidence and trust in. Please don't think foreclosure is the only answer, Noreleen at Clarin Realty can help! --Adriana-SF"
Friday, September 2, 2011
Legislative Counsel's digest
SB 458, Corbett. Mortgages: deficiency judgments.
Existing law prohibits a deficiency judgment under a note secured
by a first deed of trust or first mortgage for a dwelling of not more
than 4 units in any case in which the trustor or mortgagor sells the
dwelling for less than the remaining amount of the indebtedness due
at the time of sale with the written consent of the holder of the
first deed of trust or first mortgage. Existing law provides that
written consent of the holder of the first deed of trust or first
mortgage to that sale shall obligate that holder to accept the sale
proceeds as full payment and to fully discharge the remaining amount
of the indebtedness on the first deed of trust or first mortgage.
Existing law specifies that those provisions would not limit the
ability of the holder of the first deed of trust or first mortgage to
seek damages and use existing rights and remedies against the
trustor or mortgagor or any 3rd party for fraud or waste if the
trustor or mortgagor commits either fraud with respect to the sale
of, or waste with respect to, the real property that secures that
deed of trust or mortgage. Existing law makes these provisions
inapplicable if the trustor or mortgagor is a corporation or
political subdivision of the state.
This bill would expand those provisions to prohibit a deficiency
judgment upon a note secured solely by a deed of trust or mortgage
for a dwelling of not more than 4 units in any case in which the
trustor or mortgagor sells the dwelling for a sale price less than
the remaining amount of the indebtedness outstanding at the time of
sale, in accordance with the written consent of the holder of the
deed of trust or mortgage if the title has been voluntarily
transferred to a buyer by grant deed or by other document that has
been recorded and the proceeds of the sale are tendered as agreed.
The bill would also provide that, in other circumstances, when the
note is not secured solely by a deed of trust or mortgage for a
dwelling of not more than 4 units, no judgment shall be rendered for
any deficiency upon a note secured by a deed of trust or mortgage for
a dwelling of not more than 4 units, if the trustor or mortgagor
sells the dwelling for a sale price less than the remaining amount of
the indebtedness, in accordance with the written consent of the
holder of the deed of trust or mortgage. The bill would provide,
following the sale, in accordance with the written consent, the
voluntary transfer of title to a buyer, as specified, and the tender
of the sale proceeds, the rights, remedies, and obligations of any
holder, beneficiary, mortgagee, trustor, mortgagor, obligor, obligee,
or guarantor of the note, deed of trust, or mortgage, and with
respect to any other property that secures the note, shall be treated
and determined as if the dwelling had been sold through foreclosure
under a power of sale, as specified. The bill would prohibit the
holder of a note from requiring the trustor, mortgagor, or maker of
the note to pay any additional compensation, aside from the proceeds
of the sale, in exchange for the written consent to the sale. The
bill would provide that these provisions are inapplicable if the
trustor or mortgagor is a corporation, limited liability company,
limited partnership, or political subdivision of the state. The
provisions would also be inapplicable to any deed of trust, mortgage,
or other lien given to secure the payment of bonds or other evidence
of indebtedness authorized, or permitted to be issued, by the
Commissioner of Corporations, or that is made by a public utility
subject to the Public Utilities Act. The bill would provide that any
purported waiver of these provisions shall be void and against public
policy.
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 580e of the Code of Civil Procedure is amended
to read:
580e. (a) (1) No deficiency shall be owed or collected, and no
deficiency judgment shall be requested or rendered for any deficiency
upon a note secured solely by a deed of trust or mortgage for a
dwelling of not more than four units, in any case in which the
trustor or mortgagor sells the dwelling for a sale price less than
the remaining amount of the indebtedness outstanding at the time of
sale, in accordance with the written consent of the holder of the
deed of trust or mortgage, provided that both of the following have
occurred:
(A) Title has been voluntarily transferred to a buyer by grant
deed or by other document of conveyance that has been recorded in the
county where all or part of the real property is located.
(B) The proceeds of the sale have been tendered to the mortgagee,
beneficiary, or the agent of the mortgagee or beneficiary, in
accordance with the parties' agreement.
(2) In circumstances not described in paragraph (1), when a note
is not secured solely by a deed of trust or mortgage for a dwelling
of not more than four units, no judgment shall be rendered for any
deficiency upon a note secured by a deed of trust or mortgage for a
dwelling of not more than four units, if the trustor or mortgagor
sells the dwelling for a sale price less than the remaining amount of
the indebtedness outstanding at the time of sale, in accordance with
the written consent of the holder of the deed of trust or mortgage.
Following the sale, in accordance with the holder's written consent,
the voluntary transfer of title to a buyer by grant deed or by other
document of conveyance recorded in the county where all or part of
the real property is located, and the tender to the mortgagee,
beneficiary, or the agent of the mortgagee or beneficiary of the sale
proceeds, as agreed, the rights, remedies, and obligations of any
holder, beneficiary, mortgagee, trustor, mortgagor, obligor, obligee,
or guarantor of the note, deed of trust, or mortgage, and with
respect to any other property that secures the note, shall be treated
and determined as if the dwelling had been sold through foreclosure
under a power of sale contained in the deed of trust or mortgage for
a price equal to the sale proceeds received by the holder, in the
manner contemplated by Section 580d.
(b) A holder of a note shall not require the trustor, mortgagor,
or maker of the note to pay any additional compensation, aside from
the proceeds of the sale, in exchange for the written consent to the
sale.
(c) If the trustor or mortgagor commits either fraud with respect
to the sale of, or waste with respect to, the real property that
secures the deed of trust or mortgage, this section shall not limit
the ability of the holder of the deed of trust or mortgage to seek
damages and use existing rights and remedies against the trustor or
mortgagor or any third party for fraud or waste.
(d) (1) This section shall not apply if the trustor or mortgagor
is a corporation, limited liability company, limited partnership, or
political subdivision of the state.
(2) This section shall not apply to any deed of trust, mortgage,
or other lien given to secure the payment of bonds or other evidence
of indebtedness authorized, or permitted to be issued, by the
Commissioner of Corporations, or that is made by a public utility
subject to the Public Utilities Act (Part 1 (commencing with Section
201) of Division 1 of the Public Utilities Code).
(e) Any purported waiver of subdivision (a) or (b) shall be void
and against public policy.
SEC. 2. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to mitigate the impact of the ongoing foreclosure crisis
and to encourage the approval of short sales as an alternative to
foreclosure, it is necessary that this act take effect immediately.
Existing law prohibits a deficiency judgment under a note secured
by a first deed of trust or first mortgage for a dwelling of not more
than 4 units in any case in which the trustor or mortgagor sells the
dwelling for less than the remaining amount of the indebtedness due
at the time of sale with the written consent of the holder of the
first deed of trust or first mortgage. Existing law provides that
written consent of the holder of the first deed of trust or first
mortgage to that sale shall obligate that holder to accept the sale
proceeds as full payment and to fully discharge the remaining amount
of the indebtedness on the first deed of trust or first mortgage.
Existing law specifies that those provisions would not limit the
ability of the holder of the first deed of trust or first mortgage to
seek damages and use existing rights and remedies against the
trustor or mortgagor or any 3rd party for fraud or waste if the
trustor or mortgagor commits either fraud with respect to the sale
of, or waste with respect to, the real property that secures that
deed of trust or mortgage. Existing law makes these provisions
inapplicable if the trustor or mortgagor is a corporation or
political subdivision of the state.
This bill would expand those provisions to prohibit a deficiency
judgment upon a note secured solely by a deed of trust or mortgage
for a dwelling of not more than 4 units in any case in which the
trustor or mortgagor sells the dwelling for a sale price less than
the remaining amount of the indebtedness outstanding at the time of
sale, in accordance with the written consent of the holder of the
deed of trust or mortgage if the title has been voluntarily
transferred to a buyer by grant deed or by other document that has
been recorded and the proceeds of the sale are tendered as agreed.
The bill would also provide that, in other circumstances, when the
note is not secured solely by a deed of trust or mortgage for a
dwelling of not more than 4 units, no judgment shall be rendered for
any deficiency upon a note secured by a deed of trust or mortgage for
a dwelling of not more than 4 units, if the trustor or mortgagor
sells the dwelling for a sale price less than the remaining amount of
the indebtedness, in accordance with the written consent of the
holder of the deed of trust or mortgage. The bill would provide,
following the sale, in accordance with the written consent, the
voluntary transfer of title to a buyer, as specified, and the tender
of the sale proceeds, the rights, remedies, and obligations of any
holder, beneficiary, mortgagee, trustor, mortgagor, obligor, obligee,
or guarantor of the note, deed of trust, or mortgage, and with
respect to any other property that secures the note, shall be treated
and determined as if the dwelling had been sold through foreclosure
under a power of sale, as specified. The bill would prohibit the
holder of a note from requiring the trustor, mortgagor, or maker of
the note to pay any additional compensation, aside from the proceeds
of the sale, in exchange for the written consent to the sale. The
bill would provide that these provisions are inapplicable if the
trustor or mortgagor is a corporation, limited liability company,
limited partnership, or political subdivision of the state. The
provisions would also be inapplicable to any deed of trust, mortgage,
or other lien given to secure the payment of bonds or other evidence
of indebtedness authorized, or permitted to be issued, by the
Commissioner of Corporations, or that is made by a public utility
subject to the Public Utilities Act. The bill would provide that any
purported waiver of these provisions shall be void and against public
policy.
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 580e of the Code of Civil Procedure is amended
to read:
580e. (a) (1) No deficiency shall be owed or collected, and no
deficiency judgment shall be requested or rendered for any deficiency
upon a note secured solely by a deed of trust or mortgage for a
dwelling of not more than four units, in any case in which the
trustor or mortgagor sells the dwelling for a sale price less than
the remaining amount of the indebtedness outstanding at the time of
sale, in accordance with the written consent of the holder of the
deed of trust or mortgage, provided that both of the following have
occurred:
(A) Title has been voluntarily transferred to a buyer by grant
deed or by other document of conveyance that has been recorded in the
county where all or part of the real property is located.
(B) The proceeds of the sale have been tendered to the mortgagee,
beneficiary, or the agent of the mortgagee or beneficiary, in
accordance with the parties' agreement.
(2) In circumstances not described in paragraph (1), when a note
is not secured solely by a deed of trust or mortgage for a dwelling
of not more than four units, no judgment shall be rendered for any
deficiency upon a note secured by a deed of trust or mortgage for a
dwelling of not more than four units, if the trustor or mortgagor
sells the dwelling for a sale price less than the remaining amount of
the indebtedness outstanding at the time of sale, in accordance with
the written consent of the holder of the deed of trust or mortgage.
Following the sale, in accordance with the holder's written consent,
the voluntary transfer of title to a buyer by grant deed or by other
document of conveyance recorded in the county where all or part of
the real property is located, and the tender to the mortgagee,
beneficiary, or the agent of the mortgagee or beneficiary of the sale
proceeds, as agreed, the rights, remedies, and obligations of any
holder, beneficiary, mortgagee, trustor, mortgagor, obligor, obligee,
or guarantor of the note, deed of trust, or mortgage, and with
respect to any other property that secures the note, shall be treated
and determined as if the dwelling had been sold through foreclosure
under a power of sale contained in the deed of trust or mortgage for
a price equal to the sale proceeds received by the holder, in the
manner contemplated by Section 580d.
(b) A holder of a note shall not require the trustor, mortgagor,
or maker of the note to pay any additional compensation, aside from
the proceeds of the sale, in exchange for the written consent to the
sale.
(c) If the trustor or mortgagor commits either fraud with respect
to the sale of, or waste with respect to, the real property that
secures the deed of trust or mortgage, this section shall not limit
the ability of the holder of the deed of trust or mortgage to seek
damages and use existing rights and remedies against the trustor or
mortgagor or any third party for fraud or waste.
(d) (1) This section shall not apply if the trustor or mortgagor
is a corporation, limited liability company, limited partnership, or
political subdivision of the state.
(2) This section shall not apply to any deed of trust, mortgage,
or other lien given to secure the payment of bonds or other evidence
of indebtedness authorized, or permitted to be issued, by the
Commissioner of Corporations, or that is made by a public utility
subject to the Public Utilities Act (Part 1 (commencing with Section
201) of Division 1 of the Public Utilities Code).
(e) Any purported waiver of subdivision (a) or (b) shall be void
and against public policy.
SEC. 2. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to mitigate the impact of the ongoing foreclosure crisis
and to encourage the approval of short sales as an alternative to
foreclosure, it is necessary that this act take effect immediately.
Our Story Of Where We Came From
“It’s not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change.” –Charles Darwin
Clarin Realty was founded 2010 by Noreleen Clarin de Mesa. For the past 8 years Noreleen worked as a Realtor. The first 5 years was with Coldwell Banker Peninsula where she gained her expertise and foundation for Real Estate. As the market shifted, Noreleen innovated her business and moved to a smaller company that focused on pre-foreclosure and foreclosure properties. She then received her Broker’s license and opened Clarin Realty.
Noreleen earned her Bachelor of Arts degree in Psychology from the University of California at Santa Cruz. Prior to Real Estate, Noreleen worked as a Financial Consultant partnering with those who want to accomplish their financial goals. Soon thereafter, she worked in the Social Services industry and established relationships with local church organizations to coordinate the "Elk Grove Clothes Closet" where families in need can come collect clothing for "Welfare to Work" or "Back to School" clothing for the whole family. She is a mom of an active 5 year old and a 3 year old and currently resides in San Francisco.
Since immigrating from the Philippines at the age of 7 to San Francisco and coming from hardworking parents who sacrifice everything they have for the sake of their children---Noreleen and her family have always lived with other families in apartments and inlaws for affordability. Her parents bought their first home when Noreleen was in High School and that’s when home buying and home ownership started making its way into her subconscious up until she bought her own first home. Everyone should be able to take advantage of owning a home and investments. It is an integral part of financial planning and independence.
“In the perspective if every person lies a lens through which we may better understand ourselves.” Ellen J. Langer, author of Mindfulness
Clarin Realty was founded 2010 by Noreleen Clarin de Mesa. For the past 8 years Noreleen worked as a Realtor. The first 5 years was with Coldwell Banker Peninsula where she gained her expertise and foundation for Real Estate. As the market shifted, Noreleen innovated her business and moved to a smaller company that focused on pre-foreclosure and foreclosure properties. She then received her Broker’s license and opened Clarin Realty.
Noreleen earned her Bachelor of Arts degree in Psychology from the University of California at Santa Cruz. Prior to Real Estate, Noreleen worked as a Financial Consultant partnering with those who want to accomplish their financial goals. Soon thereafter, she worked in the Social Services industry and established relationships with local church organizations to coordinate the "Elk Grove Clothes Closet" where families in need can come collect clothing for "Welfare to Work" or "Back to School" clothing for the whole family. She is a mom of an active 5 year old and a 3 year old and currently resides in San Francisco.
Since immigrating from the Philippines at the age of 7 to San Francisco and coming from hardworking parents who sacrifice everything they have for the sake of their children---Noreleen and her family have always lived with other families in apartments and inlaws for affordability. Her parents bought their first home when Noreleen was in High School and that’s when home buying and home ownership started making its way into her subconscious up until she bought her own first home. Everyone should be able to take advantage of owning a home and investments. It is an integral part of financial planning and independence.
“In the perspective if every person lies a lens through which we may better understand ourselves.” Ellen J. Langer, author of Mindfulness
Clarin Realty’s Core Values
Service Great is not good enough. We strive to deliver world-class service with integrity by doing everything we can to help others achieve their goals.
Family We are all one big family. We build positive family spirit through open and honest
relationships with communication.
Education Growth and learning doesn’t stop. Through education we grow both personally and
professionally.
Empowerment Through our continuous education, we share our knowledge to those around us and empower ourselves and others to make informed educated decisions.
Community Whether it’s sponsoring a local event, participating in a marathon, volunteering---we value our community to fulfill our sense of contribution
Balance We have a lot passion for what we do and we believe in work life synergy. Our personal and professional lives are deeply interconnected and we have fun!
For more information please visit our site: http://www.bayareashortsalespecialists.com/
Family We are all one big family. We build positive family spirit through open and honest
relationships with communication.
Education Growth and learning doesn’t stop. Through education we grow both personally and
professionally.
Empowerment Through our continuous education, we share our knowledge to those around us and empower ourselves and others to make informed educated decisions.
Community Whether it’s sponsoring a local event, participating in a marathon, volunteering---we value our community to fulfill our sense of contribution
Balance We have a lot passion for what we do and we believe in work life synergy. Our personal and professional lives are deeply interconnected and we have fun!
For more information please visit our site: http://www.bayareashortsalespecialists.com/
Renewed trust for tough times
Does it feel like trust is one of the major casualties of the economic meltdown of 2008 – followed by the “Great Recession,” the “Jobless Recovery” and now the threat of a “Double Dip Recession?”
Weren’t we assured that home values were destined to go up and up and up?
There have been lots of promises that help is on the way—and lots of warnings of scams and schemes that have only served to confuse the matter. So where’s a homeowner who’s underwater or overleveraged to turn?
Here’s the bottom line: the choices that homeowners make when they feel they are at the end of their rope will have ramifications for years to come on their ability to qualify for credit, their job prospects, their security clearance and their overall finances. When a family’s financial trajectory is rapidly heading in a negative direction, there’s no substitute for the helping hand of a knowledgeable expert who has the integrity, the experience and the training to reverse the course—someone who is tapped into regulatory initiatives and can separate fact from fiction.
It is my mission to serve as a credible source of information and perspective to homeowners who have found themselves in a tough situation and need help sorting through their options. That’s why I sought out the Certified Distressed Property (CDPE) designation—the most renowned and recognized credential in the distressed property field, and it’s why I continue to stay on top of regulatory and industry developments that impact options available to homeowners who are struggling with their current financial situations.
My message to homeowners who do not know where to turn: there is hope. Foreclosure is not inevitable and neither the government nor your bank wants to see that happen. No one expected to find themselves on the brink of foreclosure, but I have worked with countless clients who have managed to turn their financial trajectory around and get on a path of financial recovery.
It CAN be done! And it would be my privilege to help.
For more information please visit our site: http://clarinrealtyshortsale.com/
Weren’t we assured that home values were destined to go up and up and up?
There have been lots of promises that help is on the way—and lots of warnings of scams and schemes that have only served to confuse the matter. So where’s a homeowner who’s underwater or overleveraged to turn?
Here’s the bottom line: the choices that homeowners make when they feel they are at the end of their rope will have ramifications for years to come on their ability to qualify for credit, their job prospects, their security clearance and their overall finances. When a family’s financial trajectory is rapidly heading in a negative direction, there’s no substitute for the helping hand of a knowledgeable expert who has the integrity, the experience and the training to reverse the course—someone who is tapped into regulatory initiatives and can separate fact from fiction.
It is my mission to serve as a credible source of information and perspective to homeowners who have found themselves in a tough situation and need help sorting through their options. That’s why I sought out the Certified Distressed Property (CDPE) designation—the most renowned and recognized credential in the distressed property field, and it’s why I continue to stay on top of regulatory and industry developments that impact options available to homeowners who are struggling with their current financial situations.
My message to homeowners who do not know where to turn: there is hope. Foreclosure is not inevitable and neither the government nor your bank wants to see that happen. No one expected to find themselves on the brink of foreclosure, but I have worked with countless clients who have managed to turn their financial trajectory around and get on a path of financial recovery.
It CAN be done! And it would be my privilege to help.
For more information please visit our site: http://clarinrealtyshortsale.com/
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