About San Joaquin County, CA

When I hear the word "Settlement" I think of the pieces of mail I get on a regular basis - telling me to join in on a class action suit in order to reap the rewards of the "settlement" for this or that. So I am hoping that homeowners do not view the recent announcement in the same manner - and not request to be considered in this "Settlement" that was recently announced.

The Basics of THE SETTLEMENT:

The Basics

The $25 billion in funds will be dispersed as follows:

$17 Billion National Commitment to Foreclosure Relief Efforts
The servicers collectively agree to commit a minimum of $17 billion directly to borrowers through foreclosure relief effort options, including principal reduction for qualifying borrowers, short sales, anti-blight measures, and enhanced homeowner transition programs.

$3 Billion National Commitment to Underwater Mortgage Refinancing Program
The servicers collectively agree to commit $3 billion to refinance “underwater” homes (when a homeowner owes more on a mortgage than a home’s current market value). To qualify, borrowers must be current on their mortgage payments on a mortgage owned by one of the five banks.

$5 Billion Payment to States and Federal Government
The servicers’ $4.25 billion payment to the states includes $1.5 billion for payments to borrowers who lost their home to foreclosure by one of the five servicers…$750 million of the state-federal payment will go to the federal government to resolve federal claims.

No this is not talking about the ground hog. Anyways that is over until next year - and only on Feb 2nd.

What I am talking about 'Shadow Inventory'

The shadow I am talking about is "Shadow Inventory": A term that refers to real estate properties that are either in foreclosure and have not yet been sold or homes that owners are delaying putting on the market until prices improve. This is the inventory the real estate industry have been waiting on for months (almost 2 years) now. This is the inventory that banks are holding on to or have released and didn't tell but a few. This is the term that adds to the confusion of the market and the real estate professionals --- this shadow inventory is keep or has kept a large number real estate professionals out of work and as I said before confused.

Shadow inventory can also create uncertainty about the best time to sell (for owners) and when a local market can expect full recovery. Also, shadow inventory typically causes reported data on housing inventory to understate the actual number of inventory in the market.

With the unprecedented number of foreclosures stemming from the subprime mortgage meltdown of 2007-2008 and the overall housing market collapse during that crisis, lenders were left with significant real estate holdings. Many lenders were slow to put their inventory up for sale for fear of flooding the market and further driving down prices, which would in turn lower their potential ROI.

Well hello and yo are you are awake --- the market was still affected in a big way (even without the shadow inventory) and the prices were and in some areas still way down. Although on a positive note: some area/markets are realizing a light at the end of the tunnel.

Speaking of the ground hog - have the banks seen their shadow or not?

I received a call from a friend asking for help selling their condo. It is a short sale and the hardship is DIVORCE! Shouldn't have answered the phone. Both husband and wife want to sell, but they have declared war on anything that is mutual. They won't sit down together or apart to sign documents.

She is friendly enough and will sign docs but refuses to do a financial unless he does first. He will sign docs separate from her, but only if I (yes me) pay his divorce lawyer to be present.

Shouldn't have answered the phone, but I am sure one of you have been able to overcome a situation like this before. HELP, Suggestion Box is open and waiting!

My name is Dale Bledsoe with Crown Key Realty and as always I may be reached at 209-48106031. You may also visit me on the web at www.dalebledsoe.com

Some are asking well why not? Why is Fannie Mae and Freddie Mac not participating in or included in the Settlement?

The Settlement Does Not Apply to Loans Owned by Fannie Mae and Freddie Mac - These two Government Sponsored Agencies (GSE’s) agencies now own approx. 50% of all loans in the U.S. and up to 80% of all the subprime loans that are in the most trouble. This Settlement will provide no help for these homeowners. Even though Fannie Mae is under a Government Conservatorship, Fannie Mae actively opposes any principal reduction of its loans.

I am expecting that they are being excluded for a reason, maybe it is because the major banks were the leaders in this maze and they are getting slapped for their part. Plus it is not uncommon for Fannie Mae and Freddie Mac to have to their own programs - seperate from the big leaders in this mess.

None the less, I encourage all homeowners that are in trouble and feel that some help is better than none to go to your lender and see how they can help. I also advise you to file the same papers with the attorney general to be sure they uphold their end - lenders can be tricky. As we all know.

Homebuyers: I find this chart very handy on the different ways a buyer can consider holding title. One of the documents/ questions asked a buyer is how do you want your property vested? From the choices listed below – the buyer(s) will choose. This form and question will come from title during the escrow period and again at the closing/signing of documents.

Whether you are a married couple, married filing as separate property: or whether you are filing In common, Tenancy, community or survivorship you should know how each works before you make the decision. And always keep in mind that California is a 50/50 state!

Of course, this works for a homeowner that wishes to change the way they are presently holding title on their property. In the case of a change – a quitclaim deed would be required.

Have questions or just want to hear the explanation for each selection – ask your escrow officer - they are the experts in what each means … However, they will not be able to make the decision for you!