Dave Thurman's Real Estate Blog

• Up Front MIP will decrease from 2.25% to 1%
• Annual MIP will increase from .50/.55 to .85/.90 for terms greater than 15 yrs

FHA will make the premium fee changes on all new case numbers effective October 4, 2010.

Email bulletin was received from one of my favorite lenders:

Terrie Nevis
Prime Lending
3203 W. March Lane Ste. 120
Stockton, CA 95219
Office: 209-952-6800

Homeowners who are underwater with their mortgage may find that relief is on the way from a bill strongly supported by the National Association of Realtors® that would impose a deadline on lenders to respond to short-sale requests.
The legislation, H.R. 6133, “Prompt Decision for Qualification of Short Sale Act of 2010,” was offered yesterday in Congress by U.S. Reps. Robert Andrews (D-N.J.) and Tom Rooney (R-Fla.). The bill would require lenders to respond to consumer short sale requests within 45 days.
“The short sale, which requires lender approval, is an important instrument for homeowners who owe more than their home is worth,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “While the lending community has worked to im-prove the size and training of their short sales staffs, they still have a long way to go on im-proving response times.”
“As the leading advocate for homeownership issues, NAR believes that quicker attention to the short sales process is vital to help homeowners who are underwater and their communi-ties, as well as the nation’s economy,” said Golder.
The number of potential short sale properties is rising across the country. According to NAR data, in the second quarter of 2010, Nevada, California, Florida and Arizona are states where significant shares of all properties on the market are potential short sales: 32 percent, 28 percent, 27 percent and 24 percent, respectively.
“Unfortunately, homeowners who need to execute a short sale are severely hampered be-cause lenders (loan servicers) are unable to decide whether to approve a short sale within a reasonable amount of time. Potential homebuyers are walking away from purchasing short sale property because the lender has taken many months and still not responded to their re-quest for an approval of a proposed short sale price. Many consumers have mentioned that the delay in short sale price approval exceeds 90 days, and in many cases never arrives,” Golder said.

Source: CENTRAL VALLEY ASSOCIATION OF REALTORS®

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Number of Homes for Sale vs. Sold vs. Pending

August 2009 there were 700 homes for sale in Stockton, California in comparison to August 2010 where there was an increase to 1237 homes for sale. The number of homes sold in August 2009 was 510 and in August 2010 the number of homes sold decreased to 347. In August 2009 there were 615 pending sales which increased to 624 in August 2010.

More graphs and charts from our MLS and TrendVision Reports

Stockton, Manteca, and Lodi, CA Real Estate – Dave Thurman

I found a home which for some reason was not selling well due to the slow real estate market place in 1975. I told my real estate broker friend that I would list my present home with him if he would help me buy the home I wanted to purchase. I had very little cash available but I did have a home I no longer wanted to own. I thought, to myself what do I have to lose?

So, the broker listed my home, which also did not sell!!! By the way, I was not in real estate yet, but I was thinking about a new career as a real estate agent.

Anyway, when the time ran out on the agreements, I was asked by the brokers do you really want to make this deal work…I said “if you can help me make it work then I am in!” I was told to remove my contingency of selling my home. I was approved for the financing as long as the lender could verify the down payment (which I did not have). OK, what next I asked my broker? My agent not only arranged a short term loan for my down payment, but he guaranteed or co-signed for it. We closed the deal, I moved in my new home and rented out the old home. My broker friend made a good commission on my purchase and also a little interest on my loan which I did payoff when my old home finally sold.

Why am I telling this story…maybe it is time for buyers, sellers, brokers and lenders to get a little creative with the right parties. Oh by the way, I sold the home in the story for almost double the price I paid for it in a little over 18 months.

The California Housing Finance Agency has announced a new $700 million program to help California homeowners who are struggling to make their mortgage payments.

The program, “Keep Your Home,” offers payment subsidies, lump-sum catch-up money, principal reduction, and relocation assistance for low- and moderate-income homeowners who’ve experienced a financial hardship, major change in life circumstance, unaffordable increase in their mortgage payment, or severe decline in their home’s value.

If the above describes your situation, please consider the program’s four  components:

• Homeowners who’ve lost their job and are in imminent danger of foreclosure due to short-term financial problems can obtain a payment subsidy of up to $1,500 or 50 percent of their monthly mortgage payment, whichever is less, for as long as six months.

• Homeowners who’ve missed one or more payments can receive up to $15,000 or 50 percent of the past due amount, whichever is less, to reinstate the mortgage and prevent a foreclosure. The lender, loan servicer, mortgage insurer, and/or borrower must match the catch-up money on a dollar for-dollar basis.

• Homeowners who have severe negative equity can receive up to $50,000 to reduce the principal balance on their mortgage to a market level to prevent an avoidable foreclosure and promote sustainable homeownership. The money is granted on a matching basis, which means the lender must agree to reduce the principal balance by the same amount.

• Homeowners who can’t afford to keep their home and are willing to cooperate with a participating lender’s short sale or deed in- lieu of foreclosure program can receive a one-time grant of up to $5,000, paid through the loan servicer, to transition to a more affordable residence.

To qualify, you must occupy the home as a primary residence, meet income restrictions based on county and household size, sign a hardship affidavit, have enough income to make modified payments, be delinquent or in danger of imminent default, and meet other guidelines. The property must be in California and cannot be abandoned, vacant, condemned, or in serious disrepair. The program is expected to roll out by Nov. 1st.

Source: California Real Estate Magazine

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5120 Virtue Arc Dr, Stockton CA 95207

Deal Failed ~ Back on Market!

On September 11, 2010 at 11:00 AM, you are invited to an Open House at 5120 Virtue Arc Drive in Stockton. If you are looking for a Single-family (REO) property in this area, don’t miss this rare opportunity to visit this magnificent property. For a preview of this Single-family (REO) property, check out my site at RealtyWorldDaveThurman.com. Please do not hesitate to Contact Me if you have any questions or wish to schedule a private showing.