Great news has come from the treasury dept..."Treasury Secretary Timothy Geithner on Saturday told lawmakers that financial institutions that receive government assistance will have to make loan modifications and meet other new standards, according to Democratic sources."

This is great news for homeowner who might be facing foreclosure. I am very busy working with homeowners who need loan modifications and this is becoming a large part of my business. I applaud the Treasury Dept if they take a strong stance on forcing these abusive loans to be redone with more fair and reasonable terms to the borrower.

Temporary Suspension of Some CalHFA Programs

The Pooled Money Investment Board (PMIB) voted on December 17, 2009 to defer all bond expenditures from the Pooled Money Investment Account (PMIA) until the State's budget shortfall is resolved. This freezes any disbursements from the PMIA until they meet again in January 2009. The result of this is that CalHFA must temporarily discontinue several programs. CalHFA will suspend purchases of 30-Year Fixed Rate Mortgages until we receive an update and clarification from the PMIB. CalHFA will also temporarily discontinue the Extra Credit Teacher Home Purchase Program (ECTP), California Homebuyers Down Payment Assistance Program (CHDAP), School Facility Fee Down Payment Assistance Program (SFF) and Affordable Housing Partnership Program (AHPP). Please note that the 100%-financed Community Stabilization Home Loan Program (CSHLP) and SMART Program will still be accepting loans through the usual channels. Down payment assistance from non-CalHFA sources will continue to be accepted.

Here's a list of programs currently available:

· American Dream Down Payment Initiative (ADDI) - 6% Down Payment Assistance for Low Income First Time Homebuyers within the City of Los Angeles.

· City of Los Angeles Housing Department's Mortgage Credit Certificate Program (MCC) - Allows an eligible homebuyer to claim an annual federal income tax credit and is applied to a portion of the total mortgage interest paid every year for the duration of the first mortgage loan.

· SRAR First Time Home Ownership Grant - Southland Regional Association of Realtors currently offers a $4000 grant to low- and moderate-income buyers who purchase a home in the San Fernando Valley. Funds are available after the close of escrow and there are no repayment requirements.

· FHA (Federal Housing Administration) Loans - Offers a first mortgage with 3½ % down payment required and up to 6% in seller paid closing costs or repairs.

Contact: Jason Hector, Real Estate Broker (818) 357-9658

jhector@socal.rr.com

www.jasonhector.com

Great news this week from our Government to help those who are more than 90 days late on their mortgage. Let's keep track on Active Rain if the results are as promissed and people are having any luck.

According to the CAR Market Matters Advisory, "The Federal Housing Finance Agency (FHFA) this week announced a new government program to help mitigate foreclosures on loans owned or guaranteed by Fannie Mae and Freddie Mac. The program is targeted toward borrowers who are at least 90 days delinquent in their mortgage payments and have a high loan-to-value ratio. Reduced interest rates and longer terms of as much as 40 years may be offered to qualified borrowers. Some economists believe that areas such as California, Florida, and other high-cost areas will benefit the most from the program due to larger debt loads and higher rates of nontraditional mortgages".

Anyone who has been working with this program please let the rest of us in on the news. Happy Blogging!!!

Top 5 Myths of Bank Owned Properties (REO's)

1. The bank is very motivated to sell these properties. Usually they are not that motivated, typically leaving the properties on the marked for several months at a high listing price.
2. Bank owned properties are cheaper than regular properties. The bank owned properties are usually cheaper because the condition is worse.
3. I can easily buy a bank owned property with a low money down loan. Not really in this market. Banks are usually not willing to accept any offer unless there is a down payment of 20%.
4. I need to talk to my local banker to get a list of bank owned properties. Not anymore. Maybe in the old days but now there are investors, asset managers, etc and much of it is outsourced.
5. The banks will accept low offers because they need to sell the property fast. The banks are very willing to wait until they get what they feel is a reasonable offer. Kinda the same as #1.

Anymore that you can add, please feel free. Thanks, Jason

I am working with a short sale negotiator on a purchase transaction and they are charging a 25% referral fee for the entire commission. It doesn't seem right to me. Isn't the short sale negotiator working for the seller only? Wow, experience does have it's price.

On the positive side, the negotiator already had approval from both lenders. The first and second are with different lenders. Looks like he has been working on this transaction for several months. I'm not doubting that it is a well deserved referral fee, just curious about other peoples experiences. Your feedback is greatly appreciated.