@HousingWire | Economic Growth needs Securitization? Did this not cause the last Bubble?!

Securitization Machine!

Securitization Machine!

‪#‎MondayMorningCupofCoffee‬ by HousingWire | Did you know, For‪#‎Economic‬ ‪#‎Growth‬ we need more securitization?! Are you asking yourself, what is Securitization? Definition: “Securitization is the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming them into a security. A typical example of securitization is a mortgage-backed security (MBS), which is a type of asset-backed security that is secured by a collection of mortgages.” The Article by

@HousingWire can be read in it’s entirety here…

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Berkshire Hathaway provides us with the tools! Get your free Home Market Report, Free!!!

Market Report

Select Image above and enter your zip code or ZOOM into your area of town and see the statistics that pop up, for FREE!  Another reason to choose us here at PlatinumElite.com or one of the associates! Our tools and back office infrastructure is all geared towards helping the homeowner sell or buy Real Estate! We are here to assist you in finding and providing the necessary information for you to make the healthiest choice for you and your family.

Which Option is Best for me as a Distressed Homeowner? Watch and See!

Do I keep paying the bank? Do I become a Landlord? Do I do a Loan Modification? Do I do a Short Sale or Modified Pay-off? Foreclosure or Foreclosure Mediation, is it an option or is it inevitable? Do I turn it back to the bank through a Deed-in-Lieu? I am sure the bank likes that choice, however, what does this do to me and my credit? Bankruptcy? Option or Strategy? You decide?!  As a Distressed Homeowner what Option do you I select that is best for my situation, that gives me the most control and what are the ramifications?! Watch our second video in our Neighborhood Home Rescue Series and decide for your self:

In this Video Series we have covered the Market Overview for Las Vegas and in this video you will learn Who and What is the Neighborhood Home Rescue and much, much more………..

  • Learn about the Neighborhood Home Rescue purpose and mission statement
  • It is a Network of Professionals
  • Works with Banks
  • Educates the Homeowner who is Distressed which are the best “Options” available
  • No Fee | No Advance Cost Programs first and foremost
  • Costs covered and not covered
  • Costs that might fall back on Homeowner:
    • HOA Fees
    • Transfer Fees
    • Compliance Fee
  • Options to Homeowners
    • Continue to pay Bank
    • Become a Landlord and Rent out property
    • Loan Modification (5 Year temporary fix and puts you upside down in most cases)
    • Short Sale – A Loan Modification with deficiency release @ current market value
      • Most Control
      • Position and Location
      • Costs known and a tax write-off
      • Debt relief | Deficiency Release | Quick Credit Recovery (10 – 24 Months)
      • Pros and Cons to Credit Ramifications
    • Deed in Lieu – Debt relief for only 2013, what about years after 2014+
    • Foreclosure and Foreclosure Mediation 30-120 day process
      • $200 Fee by Homeowner which stops or slows Foreclosure (Strategy)
      • Bank Options are to Modify | Short Sale | Deed-in-Lieu | FC or Start over
    • Bankruptcy – Chapter 7 or 13
    • Moving forward with Lending and Lending Options
    • Estate Planning and Asset Protection

Guest Speakers are joint contributors to the Neighborhood Home Rescue Program and offer free consultations through the Network. If you want to discuss your circumstances in more detail, receive a free consultation, or if you want to learn more regarding the Neighborhood Home Rescue contact our Hotline at 702-675-3000 or e-mail us at info@PlatinumElite.com, we look forward to Helping Distressed Homeowners!

Mission Statement:

Outreach Program for Distressed Homeowners

Designed to inform and help Homeowners understand how to work with No Cost Programs and No Advance Fee assistance resources available while obtaining information to make a more healthy decision for their family.

Are Banks Stealing Homes from Homeowners? You Decide!

Short-Sale-Questions-262x300

Recently, the President of the GLVAR (Greater Las Vegas Association of Realtors), asked all Realtors to stand-up for what is right. Banks and Servicing Entities are again instructing BPO Agents to not include Foreclosures, REO properties, Short Sales, Properties in poor condition, and are including properties that are too far out from the subject property. They are also using, “As-Is” Language, which is not recognized in the State of Nevada, it should be “As-Disclosed!” Whatever happened to “Fair Market Value!” These same banks would not loan on a property based on the same valuation and criteria they are setting for Short Sales. This is a “To Big to Fail” Mentality and the BPO Agents are agreeing to it to get the work!

I attended a mediation hearing for a client, as a service we provide, where I pointed out to the mediator the flaws in the Bank ordered BPO and the Mediator agreed that the instruction to the BPO Agent was a mis-representation of its true value and marked on the Mediation Resolution Form, “BPO was flawed due to mis-representation.” Thus finding that the Bank was acting in bad faith and therefore the “Certificate of Foreclosure,” will not be issued! You also can act on your clients best interest, as well as on the promptings of the GLVAR President and myself that this must stop! This is Aiding and Abetting Fraud perpetuated by these institutions and by doing nothing we are allowing it and seeing homeowners put out on the street! Remember GLVAR is a Self-Policing Entity, that means All of Us are responsible!  Please start reporting Agents that are following these flawed instructions by Fannie Mae or whichever servicing entity has engaged the BPO Agent. Is the money really worth your license?

Below, see our original article published earlier this year. This issue is going to get worse prior to resolution!

A homeowner wanting to do the right thing in relation to working out here situation with her lender, contacted me for assistance.  She explained to me that she is behind in payments and wanted to know her options, at this time.  Mind you this is a very nice home, in a very nice community, however, like many homeowners in today’s distressed market, her circumstances have caused her to become delinquent.  Wells Fargo, the servicing company for Freddie Mac, instructed her that she would have to consider selling the home as a loan modification was not an option due to insufficient income.  Wells Fargo stated they would do a valuation.  They hired an evaluator to provide a Brokers Price Opinion, known in the industry as a BPO.  This BPO / Appraisal as her lender stated, would be necessary for them to re-entertain a loan modification or to establish a sale amount to cover and include unpaid principal, reinstatement fees, back interest, and legal fees.  The Freddie Mac BPO was valued at around $370,000 dollars.  When the homeowner contacted me to discuss listing the property for sale, as she was instructed by Wells Fargo, I was perplexed by the fact that I could not find any comparable “Model Matches” in the entire community or similar models in the surrounding communities that came anywhere close to the banks valuation.  My valuation was more in the range of $280,000 to $290,000 a variance of over $80,000.  This places the homeowner in a potential Short Sale situation, which we are more than happy to assist with and successfully provide for our clients.  However, with the banks valuation I stated that “this over valuation by the bank has to be explained, as Lender BPO’s are done by other professionals in the area.” When I contacted the Homeowner’s bank, not surprisingly, I was declined a copy of the BPO.  However, the homeowner had the contact information for the evaluating agent.  As this industry is small, I knew the BPO Agent, and contacted him directly. With the right connections I was able to obtain a copy of the BPO results and have a conversation with the evaluating Agent. I was taken back by his “Instructions” from the Servicing Company as guidelines for any Freddie Mac backed home.  He stated, “You would never believe how far I had to go outside of the subject properties’ community to find non-distressed comparables.”  This was his specific instructions by the Servicing Company for Freddie Mac, “No Distressed Properties are to be included in the report!”  Placing the comparable homes completely outside of the community. In fact, he mentioned, “The Comps selected were beyond a mile!”  I ask you, How is this a Comp?! This type of activity is completely putting our market, not only here in Nevada, but across the country in turmoil.

What is the motivation behind inflating the price on a non-performing Asset?

We all know for a fact that a Buyer’s appraiser is not going to go by the same parameters and the home will appraise at a lower market value creating several issues;

  • A valuation dispute with the servicing company
  • Delay in the traditional or short sale process
  • Mis-stated information when this BPO / Appraisal valuation is brought to the table during a homeowner’s mediation
  • Buyers being asked to pay the inflated difference in value

If no resolution, the homeowner is left up a creek without a paddle. Without assistance through a short sale most homeowners inevitably end up in foreclosure.  It would seem Freddie Mac and Fannie Mae have decided NOT to help homeowners in trouble. Is this the result for homeowners trying to do the right thing?

Who benefits from this inflated BPO that created this mess?

Please understand, though overseen by the Treasury Department, Freddie Mac or Fannie Mae have their  own motivations.  When a Freddie Mac and Fannie Mae backed homes revert to them through either foreclosure, deed-in-lieu, or other means, it is then made available through a variety of venues, for instance Fannie Mae’s HomePath Program (select the HomePath “More Info”). This program does not require appraisals for buyers using it, offers incentives, and offers as much as only 3% down assistance. On the surface this is attractive to the buyer, however, with these incentives they can then over value and oversell the property by 10% to 30% over current market value as stated in the “Related Articles” below. By further controlling the number of homes released to the market and constricting inventory, this inevitably drives up a falsely inflated market. “BUYERS BEWARE” you may be closing on upside down property from the get go. Again, I ask where is the Assistance for the Sellers that fell victim to this same behavior and here it is being condoned by an entity with Government oversight?!  Homeowners must no longer allow banks to have it their way.  This type of mentality that “They are To Big to Deal With,” must change.  Be an informed seller, an educated buyer, and a smart investor. The homeowner in this situation, through Network Assistance Program is taking the steps with us to utilize Nevada’s Foreclosure Mediation Program.  Follow us for more information as this scenario unfolds.  If you find this information useful and applicable to you or others close to you, please contact us and / or share through our social media links.

We can assist you in knowing which is your best option in relation to your real estate needs and we want to help you get the assistance you need to maneuver through this unprecedented Real Estate Market.  Please contact anyone of our Team Members here at Platinum Elite by clicking on our Home Page, email us at Info@PlatinumElite.com or call us at 702-869-9999.

Donald Lainer, Team Lead for Prudential’s Platinum Elite Group

Related articles

House Flipper’s Beware…….

Buyer Beware!

Buyer Beware! (Photo credit: Wikipedia)

With the sudden spike in home prices reported not only in Nevada, around the country, the opportunities for “House Flipping” increase exponentially, especially for those that bought during the lowest point of the market, regardless if you were an investor or home buyer.  Remember, there are restrictions to flipping, not only for a FHA loan, Underwriter‘s for all Lenders for every type of loan instrument have their own internal guidelines that parallel the FHA limitations.

“Read Marcie Geffner’s entire article published by Barkrate.com”

FHA waives rule against house flipping

By Marcie Geffner • Bankrate.com

Anti-flipping waiver has some restrictions

“Buyers should be aware of the FHA’s limits on the anti-flipping rule waiver, which are as follows:

  • The home sale must be at arm’s length, which means there can be no close business or personal relationship between the seller and buyer.
  • If the price that the buyer agrees to pay for the home is more than 20 percent higher than the price the investor paid to purchase it, the sale will be subject to extra scrutiny to ensure that the value hasn’t been inflated.
  • The Home Equity Conversion Mortgage for Purchase program is excluded from the waiver. This program allows older homeowners to combine a reverse mortgage and a home purchase.
  • The 90-day time period might be shorter or longer than 90 calendar days due to the way the start and end dates are determined. The start date occurs when the sale is recorded. The end date occurs when the purchase contract is signed.
  • The waiver began Feb. 1, 2010, and will last one year, unless the FHA extends or withdraws it. The waiver can be withdrawn if there is a significant increase in defaults or mortgage insurance claims on FHA loans that were used to buy flipped homes.

Home buyers typically don’t encounter the anti-flipping rule until they’ve found a house they want to purchase and been told they can’t use a FHA loan unless the investor has owned the home for at least 90 days. Buyers who are concerned about this pitfall should ask when the investor purchased the home, what the sale price was and whether FHA financing will be allowed.”

One point we here at Platinum Elite Group want to point out regarding the “90-Day” Restriction is that, per a Lender, that it is not to close escrow, it is a restriction pertaining to the date of the Offer and Acceptance Agreement or as our source stated, “Date written not closed!”

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We look forward to helping you with your needs in Real Estate.

Related articles

Home prices take biggest leap in 7 years, reported by InMan News

Corelogic: Prices in January up 9.7 percent from a year ago

BY INMAN NEWS, TUESDAY, MARCH 5, 2013.

Inman News®

National home prices in January were up 9.7 percent from a year ago, the biggest annual increase since April 2006, according to data aggregator CoreLogic’s home price index.

The index, which tracks repeat sales of single-family homes, rose 0.7 percent in January from December, marking the 11th consecutive month of month-over-month increases.

“Home prices continued to gather steam across a broad swath of the country in January, continuing the positive trend we saw during most of 2012,” said Anand Nallathambi, president and CEO of CoreLogic, in a statement.

“Many states across the western U.S. and along the East Coast saw average price gains of more than 6 percent, which is likely to boost home sale activity into the first half of 2013,” Nallathambi said.

All U.S. states but Delaware (-0.1 percent) and Illinois (-0.4 percent) saw year-over-year increases in January, according to the index.

Arizona (20.1 percent), Nevada (17.4 percent), Idaho (14.9 percent), California (14.1 percent) and Hawaii (14 percent) topped the chart of states with home price increases in January from a year ago.

As you peruse this article, keep in mind this is a result of the two indicators we Blogged earlier this year, February 14, 2013, the foreclosures being hindered by AB284 & AB300 and the lack of current inventory.  However, in an earlier Blog, RealtyTrac reported over 1100 NOD’s filed in January of this year.  We here at Platinum Elite Group want to make you aware of this fact, prior to you making any listing or selling decisions.  For a property valuation you may contact our office at PlatinumElite.com , email us at info@platinumelite.com or call us at 702-869-9999.

 

Fannie, Freddie to Create Joint Firm as Reported by the Wall Street Journal

Freddie Mac

Freddie Mac (Photo credit: Wikipedia)

BY NICK TIMIRAOS of The WSJ Reports;

The regulator overseeing Fannie Mae and Freddie Mac announced Monday one of the most concrete efforts to date for building a new infrastructure that could ultimately replace the government-controlled mortgage companies.

Edward DeMarco, acting director of the Federal Housing Finance Agency, said the agency would begin forming a company that would consolidate some of the “back-office” functions currently replicated individually by each firm. The company would have its own chief executive and board and for now would be jointly owned by Fannie and Freddie, Mr. DeMarco said in a speech Monday before the National Association of Business Economics in Washington, …

Maybe something good will come of the Government’s Sequestration?!  Please stay tuned to our Blog for more Details as this NEWS evolves, or you may contact us at PlatinumElite.com or call us at 702-869-9999 to discuss how this may affect your Home or current Listing with us.