Tuesday, February 17, 2009

Housing Assistance Plan for the San Fernando Valley

Expect to Hear More on Housing Assistance Plan The Obama administration is considering plans to subsidize mortgage payments for owners facing financial troubles and allow underwater homeowners to refinance. Plans are likely to be announced Wednesday.

The refinancing proposal is expected to include a test that troubled homeowners could use to prove eligibility before their mortgage becomes delinquent.

The administration also is expected to endorse a cram-down plan that will allow judges to modify mortgages during bankruptcy procedures. And it will push for legislation that will remove obstacles that prevent mortgage servers from modifying troubled loans.

Mortgage giants Bank of America Corp., J.P. Morgan Chase & Co. and Citigroup Inc. have halted foreclosures until Obama announces details on these plans.
Source: The Wall Street Journal, Deborah Solomon and Robin Sidel (02/14/2009)

Short sale homes in pre-foreclosure in the San Fernando Valley
Bank Owned homes in the San Fernando Valley

Thursday, February 12, 2009

$7500 Tax Credit - San Fernando Valley

Stimulus Advances With Tax Credit Changes
The $790 billion stimulus package hammered out by House and Senate conferees late yesterday afternoon drops the repayment feature on the home buyer tax credit

Foreclosures on Hold While Stimulus Crafted
Home foreclosures are slowing as lenders wait for Congress to approve the stimulus package.

Richard's notes: I do believe that the number of San Fernando Valley foreclosures (bank owned homes) is 10-15 times greater than what is displayed in the Realtor MLS system and what is considered available 'Active'. What this means is that REO agents have been instructed to not expedite the eviction process thus reducing the number of available bank owned homes on the market.

I believe the banks with the financial backing of the government, are preventing home prices from falling further by not saturating the marketplace with bank owned homes. Realtors seem to be gunning for bank owned homes rather than short sale homes because the success of a closed escrow is higher.

Real estate agents who specialize in listing bank owned homes (REO agents) seem to be pricing the homes to sell within a week.

Thursday, February 05, 2009


The Los Angeles County Assessor's office is alerting homeowners that various private companies are sending mailings to property owners offering their services to pursue a reduction in the owner's property taxes. The companies may charge hundreds of dollars to file for a reduction in value on behalf of the property owner. Some companies also are imposing late fees if the application is received after an arbitrary deadline. Solicitations from private companies offering to pursue a reduction in property taxes must clearly indicate that they are NOT a government agency and that their services are NOT approved or endorsed by any government agency. Failure to provide such notice is a violation of California law.

In 1978, California voters passed Proposition 8, a constitutional amendment that allows a temporary reduction in assessed value when a property suffers a "decline-in-value." A decline-in-value occurs when the current market value of your property is less than the assessed value as of January 1. The assessed value is the value shown on a property owner's most recent property tax bill. Typically, an application from the property owner is required to initiate a review of the property's value by the Assessor.

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San Fernando Valley & Santa Clarita Valley Home-Owners Only.

Senate OKs $15,000 Bonus for Home Buyers

Senate OKs $15,000 Bonus for Home Buyers Housing could get a big boost from the latest addition to the mammoth stimulus bill working its way through Congress.

Senate legislators unanimously approved a proposal Wednesday that would allow a tax credit for home buyers of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time homebuyers.

"It is time to fix housing first," said Sen. Johnny Isakson, R-G.

Isakson's office said the proposal would cost the government an estimated $19 billion. In all, the stimulus is now topping an estimated $920 billion.

In an op-ed that appears in Thursday’s Washington Post, President Barack Obama painted a dire picture if Congress fails to move quickly to pass the stimulus bill.

"This recession might linger for years. Our economy will lose 5 million more jobs. Unemployment will approach double digits. Our nation will sink deeper into a crisis that, at some point, we may not be able to reverse," Obama wrote in the op-ed titled, "The Action Americans Need."Source: The Associated Press, David Espo (02/05/09)

Buy a bank owned home in the San Fernando Valley.

Wednesday, February 04, 2009

Banks in Real Estate

Banks in Real Estate

Let's first thank the banking industry for putting this country in a hole, then asking the country to give them more money to put them in another hole. That's what makes America great.

I can remember in the not to distant past that the banking industry was trying to get into the real estate industry. Aren't we glad they didn't? Just imagine the chaos we would be in today. Home values would probably be worthless and we would be in a great depression.

These local banks are still trying to flex their muscle in the real estate industry today. By asking buyer's to get pre-approved with their loan officers. Another word, if the bank owns the home, then they will ask the buyer to get pre-approved with their loan officer at the local bank.

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