1. More home for your buck. How? By taking advantage of potentially lower interest rates and dramatically lower prices, two ways in which banks entice buyers to take a losing asset of their hands—fast! Bank-owned (REOs) and foreclosed upon properties average discounts between 20% and 25% off their overall retail value. Buying the property “as is” can get you even deeper discounts.

2. More properties to choose from. There’s a massive, seemingly unstoppable inventory of repossessed homes that banks are struggling to offload during the current economic downturn and historically high spike in foreclosures. The bank’s goal is to sell quickly to qualified home buyers at significantly discounted rates. Some bank-owned homes can drop as much by as much $10,000 to $20,000 in just two weeks.

3. Bank-owned homes are easy to find. Simply call the Shandrow Group to tap into our ever-growing list of Southern California bank-owned properties and foreclosures for sale. You can opt into our VIP list now. No major time commitment on your part. No endless searching. No pressure. No hassle.

4. What you see is what you get. Unlike real estate auctions, you’ll be able to personally view exclusive, Shandrow Group listed bank-owned properties inside and out before buying. That way, you can feel confident moving forward. No lingering sight-unseen concerns. No problem.

5. Less tax hassle. A bank typically settles its property’s tax issues and liens upon repossession, meaning less hassle, time and money on your part.

Your trusted connection to Southern California’s exciting foreclosure market,

Mark Shandrow
REO Broker-Associate
The Shandrow Group
Keller Williams Realty
markshandrow.com

In an effort to stay on top of the latest in the exploding foreclosures market and the ever-adapting mortgage loan servicing industry, I had the benefit of attending the Feb. 17-20  MBA’s National Mortgage Servicing Conference & Expo in Tampa, Florida. I’m excited to share the crucial insider information I was able to learn and immediately apply to my business.

While there, I met with several seasoned industry professionals and executives representing key direct lenders, mortgage loan servicing companies and asset management firms, including Nations REO, Inc., Franklin Credit Management Corporation, SingleSource Property Solutions, Fannie Mae, Freddy Mac, American Home Mortgage and many others.

It was my first time visiting Tampa. Being there also gave me a wonderful chance to catch up with my brother-in-law, Roy, and his girlfriend.

The focus of the conference was how the loan serving industry is coping with the spike in foreclosures and the current economic downturn. In the words of conference organizers, “Unfortunately, the standard tools of yesterday simply aren’t enough to get the job done.”

The most important information that I took away from the conference are the TOOLS OF TOMORROW: the three innovative strategies banks and loan servicing entities are using to deal with the surging tide of foreclosures (which real estate experts predict won’t slow down until 2012!).

Let’s take a closer look at each:

1) Loss mitigation – The loan servicing industry is currently using short sales, loan modifications and other creative tools to mitigate losses from the current rise in foreclosures. This new phenomenon is forcing the industry to create new, innovative approaches to rebound from their losses.

2) Renting foreclosed properties - Banks and lenders are beginning to rent foreclosed properties instead of selling them, something we haven’t yet seen in real estate. They are holding onto properties and essentially acting as landlords.

3) Selling homes while they are still occupied - I heard this final strategy directly from Fannie Mae. As part of the corporation’s goal to help foster the dream of home ownership in the U.S., as well as to reduce the number of vacant foreclosure and post-foreclosure properties contributing to a rise in blighted neighborhoods, they are beginning to sell homes while they remain occupied. Executives at Fannie Mae feel doing so will help curb the rise in vacant, problem property plagued areas and avoid reducing home prices to the point that they lower neighboring property values.

Thanks for checking in. I truly appreciate your readership and referrals.

Best,
Your trusted connection to the Southern California foreclosures market,

Sincerely,

Mark Shandrow
REO Broker-Associate
Keller Williams Realty
markshandrow.com

Gov. Arnold Schwarzenegger signed a 90-day moratorium on California home foreclosures (legislation SB2X-7 and AB2X-7) amid criticism that the law likely won’t put a dent in the skyrocketing pace of repossessions.

Here’s what you need to know:

• The bill, as part of the state’s recent budget deal, safeguards owner-occupied residences that had first loans on the books between Jan. 1, 2003 and Jan. 1.
• Under the moratorium, state lawmakers can make exceptions for loan servicers, enabling them to foreclose anyway.
• Eligible lenders must meet certain criteria and have active mortgage modifications underway. Some of those criteria include: an extension of loan conditions, a portion of the principal in deferral or at least five years of lowered interest rates.
• To qualify for foreclosure immunity under the moratorium, a lender’s loan adjustment plan must include a modification of monthly payments “targeted” at 38% of a homeowner’s income. That’s slightly more lenient than President Obama’s 31% of income payment-lowering in his administration’s recently unveiled Homeowner Affordability and Stability Plan.
• Bankers, including members of the California Bankers Association, California Mortgage Bankers Association and others, are anything but pleased with Schwarzenegger’s foreclosure moratorium. In a joint letter to the state, they claimed the bill “will create uncertainty, delay economic recovery and stifle home sales.”
• The moratorium will take effect at the end of May.
• Currently, thanks to a state law that passed last year, the required time period from first notification to final sale was increased from 30 days to 141 days.

Check back soon for updates on this historic moratorium and the soaring Southern California foreclosures market.

Your trusted connection to the local bank-owned foreclosure market,

Sincerely,

Mark Shandrow
REO Broker-Associate
Keller Williams Realty
markshandrow.com

CLICK HERE FOR MORE PHOTOS

Square Feet: 2,115
Lot Size: 3,794 sq. ft.
Rooms: 4 bedrooms, 2.5 baths

Here’s your chance to buy a spectacular Orange County two-story home with all the trimmings. Nestled in a private neighborhood, this completely refurbished four-bedroom, two-and-a-half-bath boasts all-new ceramic tile, carpet, plumbing, fixtures, sinks, paint and a just-upgraded 2-car garage door. The kitchen, which opens to a cozy breakfast nook, is newly renovated and comes equipped with a built-in gas range oven, a dishwasher, a disposal and a microwave. Nosh at the roomy nook or eat in style in the nearby formal dining room. Other amenities include: forced air heating, central air-conditioning and communal pool and hot tub access. READ THE FULL DESCRIPTION HERE.

1806 Silva Avenue, Long Beach, Calif. 90807
GREAT VALUE FORECLOSURE,
CALL FOR PRICING AND INFO

CLICK HERE FOR MORE PHOTOS

Type: Single-Family Fixer-Upper
Square Feet: 1,354
Lot Size: 7,200 sq. ft.
Rooms: 3 bedrooms, 2 baths
Year Built: 1942

This large-lot north Long Beach foreclosure, situated just east of the Atlantic Avenue business corridor and north of Bixby Knolls, is definitely worth checking out. It’s a fixer-upper with great potential, for first-time buyers and real estate investors alike. READ THE FULL DESCRIPTION HERE.

659 E. CLAIBORNE DRIVE, LONG BEACH, CA 90807
FORECLOSURE—COMING ON THE MARKET!
CALL FOR PRICING AND INFO

CLICK HERE FOR MORE PHOTOS

Home Type: Single-Family
Square Feet: 1,662
Lot Size: 6,150 sq. ft.
Rooms: 2 bedrooms, 2 baths
Year Built: 1941

This outstanding large-lot, single-family foreclosure property is nestled in the heart of Bixby Knolls, Long Beach’s most exclusive inland neighborhood. The safe, charming residential enclave is tucked away in the midst of neighboring historic California Heights. Bixby Knolls is also within walking distance of the popular Atlantic Avenue retail district and two highly-ranked Long Beach Unified School District schools.

Couples with growing families will enjoy walking distance access to highly ranked academic institutions, like Longfellow Elementary School, a California Distinguished School, and Hughes Middle School. Both are standout members of the award-winning Long Beach Unified School District. For high school, Bixby Knolls residents are zoned to attend Long Beach Polytechnic High School, which ranked high among Newsweek’s 100 “America’s Best High Schools” prestigious listing last year. READ THE FULL DESCRIPTION HERE.

Want to tap into more outstanding homes on my exclusive list of bank-owned foreclosures—BEFORE they come on the market? Click here to get in the loop now.

Your trusted connection to Southern California’s exciting foreclosure market,

Sincerely,

Mark Shandrow
REO Broker-Associate
Keller Williams Realty
markshandrow.com

Today’s breaking housing news is centered on two historic events:

• The Economic Stimulus Package – President Obama signed the $787-billion economic stimulus package in Denver, Colorado, just moments ago, in an attempt to revive the hard-hit economy and slow the tide of foreclosures.
• President Obama’s Housing Rescue Plan – Tomorrow the President will unveil his much-anticipated plan to 1) rescue troubled homeowners, 2) cut down on foreclosures and 3) pressure lenders to shrink monthly payments for borrowers facing foreclosure.

OBAMA’S HOUSING RESCUE PLAN EXPLAINED
Now for a closer look at Obama’s soon-to-be-revealed housing rescue program and what it could mean to you. Here’s an up-to-the-minute snapshot of what we can expect:

1. LOWER MORTGAGE RATES/PAYMENTS
Obama’s plan is expected to lower mortgage interest rates for existing homeowners with financial backing from government-subsidized lender matching programs.

How would subsidized lower interest rates work?
The lender and the government would each pay matching amounts to lower an individual’s monthly mortgage payment. But how much? As much as several hundreds of dollars per month, reports indicate.

Critics fear Obama’s effort to put pressure on lenders won’t be enough to rescue homeowners teetering on the brink of foreclosure. The question remains: Will hyper-cautious lenders remain reluctant to restructure risky home loans?

How will the Obama administration persuade lenders to come around?
With an arsenal of government incentives. Exactly what will those carrots-and-sticks be? White House officials won’t say … until tomorrow. What we do know is that President Obama and his advisers are acutely aware of the utter failure of President Bush’s voluntary loan-modification programs, which barely had any impact on the deluge of foreclosures that began hemorrhaging onto the market in 2007.

How will the plan help homeowners’ bottom line? Here’s a financial breakdown:
The plan would reduce the average person’s mortgage to 31 percent of his or her income. The average homeowner’s mortgage accounts for up to 38 percent of their income.

According to ABC News, under the plan “a family with a  household income of $50,00 will, on average, put $19,000 toward their mortgage. Under the President’s plan, they’d pay $15,000 toward their mortgage for a savings of $3,500.”

2. EMPOWERING JUDGES TO LOWER PAYMENTS & RESTRUCTURE LOANS
Obama’s housing rescue package will reportedly include an aggressive push for legislation that would give bankruptcy judges the power to reduce a borrower’s mortgage payments and reorganize their loan(s).

“It turns out you can’t modify that mortgage if you’re in bankruptcy,” President Obama said earlier today. “Now, that makes no sense. What that’s doing is, it’s forcing a lot of people into foreclosure who potentially would be better off, and the bank would be better off and the community would be better off, if they’re at least making some payments.”

3. AT LEAST A $50 BILLION PRICE TAG
The (estimated) price tag for Obama’s plan to stop the flood of foreclosures and help struggling homeowners? At least $50 billion, but possibly up to $100 billion, according to the President’s top advisers. The Obama administration also has the authority to draw on the Treasury Department’s financial industry bailout fund—to the tune of  $350 billion, if needed.

When will we know more about Obama’s housing rescue plan? Tomorrow, when he travels to Phoenix to publicly share the details. Check back soon for an update.

In the meantime, feel free to contact me for the latest critical Southern California foreclosure market news and information.

Your trusted connection to Southern California’s foreclosure market,

Sincerely,

Mark Shandrow
REO Broker-Associate
Keller Williams Realty
markshandrow.com

I just updated the list.  I am getting one new property per day–so make sure you check back often.

So, if you already have your password, go to the Exclusive Insider Foreclosure List now.

http://markshandrow.com/reo/

If not, sign up here:

http://markshandrow.com/foreclosures/

I will be sending out updates and photos of some the new homes later this week.  These properties are not yet on the market, so you are really getting an inside peek.

Thanks,

Mark Shandrow

REO Broker-Associate

Keller Williams Realty

markshandrow.com

President Obama’s $825 billion proposed stimulus package may not put so much as a dent into the subprime mortgage crisis, but it might provide some relief for first-time homebuyers. How? In the form of a new and improved $7,500 tax credit.

As the law stands now, homebuyers have to pay the first-time buyer credit back over time. But if Obama’s stimulus passes in the Senate, they might not have to repay it at all. Not bad for those looking for their first home. But what about homeowner’s about to lose theirs?

Of course first-time buyers are thrilled that a proposed “modified,” money-saving version of the tax credit is folded into Obama’s  massive stimulus package. But homeowners teetering on the brink of bankruptcy and foreclosure are wondering why the president’s stimulus isn’t aimed more at helping them keep their homes and, moreover, survive. Lawmakers pressured the president to add a stipulation into the package that would give bankruptcy judges the power to alter existing mortgages, but he didn’t bite. Why not?

So, the question on the minds of millions of homeowners inching toward foreclosure remains: Why has the government bailed out the banks, the “credit crunched” mortgage lenders but not them?

If congressional leaders have their way, that could soon change.

Congress is urging the Obama administration to spend $100 billion of the Treasury Department’s $700 billion Troubled Asset Relief Program to put the brakes on the skyrocketing housing meltdown. To many, that’s not nearly enough. At least it’s a start.

Coming up tomorrow on markshandrow.com, a closer look at the Troubled Asset Relief Program. What is it? How will it affect you?

Sincerely,

Mark Shandrow
REO Broker-Associate
Keller Williams Realty
markshandrow.com

New foreclosure law California SB 1137—Was it a case of too little, too late?

The thousands of Los Angeles and Orange County homeowners still on the brink of defaulting on their loans likely think so. California’s record-breaking, seemingly endless spike in foreclosures has left many frustrated with SB 1137, a supposed piece of “foreclosure relief” aimed at helping borrowers in their darkest hour. But was the much-hyped law a failed, quick fix?

Chances are, if you’re reading this you already know what SB 1137 is. If not, basically the new foreclosure law required lenders to notify homeowners at least 30 days before filing a Notice of Default, buying a little more time to avoid foreclosure. (Read the full text of SB 1137.)

The bill took effect in September 2008, instigating a statewide default notice decline of some 58% from August. Foreclosures then fell by almost 37% in October. The trend further stalled in November, when default notices went up by 24% above the previous month.

In many cases, SB 1137’s “30 days” is nowhere enough time to save a home in jeopardy, whether by loan renegotiation, refinancing or otherwise. And it’s no secret that state foreclosures remain at an all-time high, despite the bill’s July 2008 introduction. Yes, SB 1137 cooled California foreclosures down in September and October of last year. But “the other 10 months of the year were brutal for the state,” says Default Research’s Serdar Bankaci.

Sean O’Toole, a foreclosure researcher, agrees. He claims the state’s new foreclosure law “helped a handful of homeowners, but in terms of reducing foreclosure volumes, all it did was add a delay, and a shorter delay than I expected.”

Sincerely,

Mark Shandrow
REO Broker-Associate
Keller Williams Realty
markshandrow.com

Photo Credit: Flickr

Shares of Fannie Mae and Freddie Mac have declined by approximately 90 percent from the previous year and both companies are reporting quarter-over-quarter losses, leading some to believe than a government take-over or complete privatization is imminent.

MAKING SENSE OF THE STORY FOR THE CONSUMER

· According to the Barron’s article, which states “should the agencies fail to raise fresh capital, the administration is likely to mount its own recapitalization, with Treasury infusing taxpayer money into the enterprises,” consumers would be led to believe that a government bail out is the only option.  Although a cash infusion may be needed, it is not likely that the Treasury would purchase an equity stake in either Fannie or Freddie.  Additionally, the Treasury Dept. must negotiate an agreement with the GSEs.  Fannie and Freddie continue to raise capital on their own and some reports show that the GSEs are looking for private-equity firms or outside investors to provide the financing, which would help raise capital and reassure Wall Street. 

· The article also states, “In the early 1980s Fannie was effectively insolvent, but the government allowed it to continue operating.” Many consumers are not aware of how the GSEs serve the market or what their roles are.  Unlike banks, which lend directly to consumers, Fannie Mae and Freddie Mac operate in what is known as the “secondary mortgage market.” They purchase or guarantee loans from direct lenders in the “primary mortgage market” and either hold onto them until they mature, or sell the loans in the form of mortgage-backed securities.  By the GSEs guaranteeing or purchasing the loans from banks, Fannie and Freddie are able to fulfill their congressional mission and supply an affordable and stable source of capital to lenders, allowing them to offer more home loans.

· Due to tighter lending standards, it is becoming increasingly more difficult for borrowers to secure home loans. If Fannie Mae and Freddie Mac did not guarantee or purchase primary lenders’ loans, the cost of homeownership would dramatically increase as lenders would experience an even greater capital shortage.

· Many financial institutions in the mortgage business are experiencing losses, and while the GSEs are no exception, their portfolios continue to outperform the majority of lenders in the market.  Additionally, unlike private investors which seem to have abandoned the mortgage market, Fannie Mae and Freddie Mac are fulfilling their congressional mission to provide an affordable and stable flow of capital to home-loan lenders. 

To read the full story, please click here:
http://online.barrons.com/article_print/SB121884860106946277.html

Thanks,
Mark Shandrow
Your Real Estate Agent for REO and Short Sales

Key Highlights of the Housing and Economic Recovery Act

· Effective Jan. 1, 2009, higher permanent loan limits for conventional conforming and FHA; limits to increase to a maximum amount or ceiling of $625,500, depending on the formula for each metropolitan area.  Note: The temporary limits established in March will expire on Dec. 31, 2008.

· FHA floor limits will remain the same at $271,050.

· The VA guaranty will increase.

· Minimum cash investment for FHA loans will increase to 3.5%.

· A moratorium on risk-based pricing for FHA loans, effective Oct. 1, 2008, as indicated in the Act.

· Elimination of Seller-funded Down Payment Assistance Programs with FHA loans, effective Oct. 1, 2008, as indicated in the Act.

· Condo processing for FHA loans will be streamlined (timeline TBD).

· FHA reverse mortgages (HECM): changes, among others, include higher loan limits, availability with purchase transactions and a modification to the origination fee.

Best,

Mark Shandrow
Real Estate Agent for Short Sales and Foreclosures