Brent White's seminar for homeowners underwater last Thursday sold out

I attended the sold-out webinar on January 27th. Brent White is a professor at the University of Arizona, attorney, and author of the "Underwater Home". Known as a controversial figure for his academic writings, and lectures on the topic of STRATEGIC DEFAULT. He does not advocate walking away, but does insists it is not a moral issue but rather a business decision. I am seeing this shift in the Luxury home market (whereas the negative equity is over $100k) and baby boomers whom are not too far away from retirement and don't have the years to invest in waiting for the market to recover. Rather they prefer to take their losses now and wait a few years to rebuild their credit to invest in real estate again. Most economists and market analysis predict it will be years before the Phoenix area housing future comes into full view. Zipcodes like 85009 which have had an 81% drop in market value may never recover. Even if homes were to double in value twice, it still would not be worth half as much as they used to be. High unemployment rates, increase in bankruptcies, economic hardships, and more home buyers becoming renters all impact the recovery process. Brent White demonstrated many different scenarios and formulas to help homeowners attending the seminar determine whether it is worth putting themselves, and their family through the stressful process of strategic default, in some cases it is just not worth it. One concern he pointed out was supplying lenders with current financial information that could be used against them later if a loan modification does not work out.

There is a lot of emotional feelings (ups and downs like a roller coaster) when a homeowner considers "walking away". This book walks homeowners through all the parts involved in the process of considering a STRATEGIC DEFAULT. Is it a moral obligation or a business decision? Obligations to society and to your neighbors (ch.1) Brent has some great analogies to convince homeowners to stay put (ch. 3 & 4) or do you need to move because of a job transfer? He covers a wide range of topics and questions most homeowners have on their minds like: tax consequences, fear of being pursued by their lender (ch.2), buying and bailing (ch.4).

I highly recommend reading this book today if some of these concerns and questions lay heavy on your heart and mind.

Read more:
http://kathleeninarizona.com/archive.php?dfilter_id=73

HAFA Changes may begin Feb 1st - Will the revisions help Short Sales?

Short Sale vs Foreclosure is still on the minds of many homeowners in 2011.
The revisions to the HAFA guidelines are in the right direction, but the revisions to HAFA do not apply to first lien mortgages that are owned or guaranteed by Fannie Mae, Freddie Mac, or insured by a federal agency such as the Federal Housing Administration. Moreover, servicers are not required to implement the new rules to any loans retroactively. It is important to find out who services your loan and get the advice from a HUD counselor for FREE.

Servicers are only required to implement these changes on new files effective February 1, 2011. So, if you have a HAFA short sale at one of the lending institutions right now, it is being reviewed under the old rules. Servicers are not required to implement the new rules to any short sales retroactively.

An example of a common short sale delay is in cases whereas a second lienholder is NOT accepting the amount offered by the first lienholder, below is the direction recommended to servicers:
Release of Subordinate Liens Subordinate mortgage/lien holders will continue to be paid in order of priority as set forth in Section 6.2.4.2 of Chapter IV of the Handbook. However, servicers are no longer limited by the six percent cap with respect to payments to each subordinate mortgage/lien holder. The servicer, on behalf of the investor, shall determine the amount or percentage of the unpaid principal balance of the lien that will be paid to each subordinate mortgage/lien holder until the $6,000 aggregate cap is reached. Each servicer must include in its HAFA Policy how subordinate mortgage/lien holders will be paid. Investors continue to be eligible for incentive reimbursement for up to one-third of the cost to extinguish subordinate liens as described in Section 12.3 of Chapter IV of the Handbook.

Mortgage servicers and investors write their own guidelines under the Federal requirements to determine how to implement the program. For more information about your options, you should contact your mortgage servicer.

If you have questions about the program, or want guidance about how these options may impact your personal situation:

Contact your mortgage servicer
http://www.makinghomeaffordable.gov/contact_servicer.html

Speak to a HUD-approved housing counselor for free.
http://www.makinghomeaffordable.gov/counselor.html

Who services your loan? (easy to use links to find out quickly below)

Does Fannie Mae service your loan?:
http://www.fanniemae.com/loanlookup/

Does Freddi Mac service your loan?:
https://ww3.freddiemac.com/corporate/

Consider all your options and consult an attorney.

HAFA proposed revisions: http://kathleeninarizona.com/archive_details.php?arch=1040

Bank of America to Halt foreclosure notices in AZ AGAIN - 1st time Judicial States/2nd time Non-Judicial States - AZ is BOTH! GETS HIT TWICE!

The first round of foreclosures halted by Bank of America were in the Judicial States, now the Non-Judicial States are being halted due to the Robo-Signing crisis. Arizona is both! (a judicial and non-judicial state). Not good, Arizona has 3 of the 4 rising foreclosure rates amoung others like California & Nevada. The halt in October caused delays in inventory coming to the market (which BOFA holds about 23% of the share of lender owned property here).

"The prolonged curtailment in NOD (notices of default) volume will lead to fewer foreclosure completions in 2011 than forecast," notes mortgage consultant Mark Hanson. "After four months of total uncertainty over the entire foreclosure process nationwide, it will have consequences on the mortgage, housing, and related sectors."

Hanson says distressed loan pipelines are "poised to get out of control beginning in Q1"

Understanding the difference
Simply stated, the non-judicial foreclosure process starts with a Notice of Trustee Sale recorded with the county. The foreclosure process is done outside of the judicial system and the home is sold at a Trustee Sale 91 days after the notice is recorded. Unless, the homeowner is able to come to terms (reinstate) with the mortgage lender prior to the trustee sale, the home will be sold. The judicial foreclosure process is a civil lawsuit filed in the court system by the mortgage holder against the borrower. Once the mortgage holder obtains a judgment, the court will direct the mortgaged property to be sold to satisfy the judgment. The property will be sold by the County Sheriff by conducting an auction. There is no right of redemption once a Trustee Sale occurs, but there is a redemption period prior to a Sheriff Sale. The borrower can pay the entire balance of the mortgage and may even have certain statutory rights of redemption after the Sheriff sale.
(A.R.S. 33-807, 33-808, 33-809 and A.R.S. 33-721, 33-752, and 33-725)

Read more:
http://kathleeninarizona.com/archive_details.php?arch=1035

Canadians will have tougher mortgage rules begining March 18th

TORONTO - Canada is tightening mortgage rules over concerns that Canadians are taking on too much debt, the country's finance minister announced Monday.
Finance Minister Jim Flaherty said the maximum amortization period for government-insured mortgages will be shortened to 30 years from 35 years.
Ottawa is also lowering the limit on how much money Canadians can borrow using their homes as equity to 85 percent of the value, from 90.

The new rules go into effect March 18.

read more: http://kathleeninarizona.com/archive_details.php?arch=1032

Anthem Family featured on TV show DOWNSIZED on WETV on Saturdays

Be sure to watch "DOWNSIZED" on WETV on Saturday nights.

A reality show featuring this courageous Anthem, AZ family working together as they face financial challenges and work through it together! This blended family - Todd with his two children, and Laura with her five children, married during the financial good times and now are downsizing due to the loss of Todd's business and their home. They do manage to work together one day at a time towards rebuilding what they lost financially, while keeping the family together happily.

"I find this show really hits close to home and is hard to watch sometimes because our family is having to make the same sacrifices too" --Neighbor in Anthem

Meet the Cast - Todd & Laura Bruce and their seven children

http://kathleeninarizona.com/downsized-f21117.html

Episodes

Call Me Dad
When Whitney decides she wants to call Todd "Dad," she encounters a surprising amount of resistance. Bailey dreams of attending a four-year college, but Laura doesn’t believe it’s possible financially. Will Laura encourage her daughter to follow her dream anyway?

Cruel Cruel Summer
After an eye-opening meeting with a financial planner, the Bruce family begins to make serious lifestyle changes. The kids agree to give up their favorite activities, and Laura sacrifices her vice. Don't miss this episode!

Down But Not Out
The Bruce family struggles to come up with all of the rent money. Fearing eviction, they spring into action. Tune in to see how what each of them are doing to contribute.

Kansas City Blues
Just as the Bruce-Rumsey family is starting to regain a normal family life, they face their most agonizing choice yet. Todd is offered a high paying job – but one with one giant drawback. Tune in to see what it is!

Love Don't Cost a Thing
After having issues on a hike, Laura worries about an upcoming MRI to make sure her Multiple Sclerosis isn’t progressing. Plus, Rex has a crush on Whitney’s friend. Tune in to see what happens on his doube date!

The Outlets At Anthem's annual tree lighting ceremony hits it's 9th year and the tree, along with the festivities, get bigger and better every year.

This year boasts the tallest, fresh cut tree in the United States, and with Santa leading the lighting countdown, and prizes and concerts to enjoy throughout the whole weekend, looks like a good time for the whole family.

For all of the details, click here: http://kathleeninarizona.com/archive_details.php?arch=976

Anthem HOA fees will NOT be raised in 2011

ANTHEM HOA HAS SOLID CASH RESERVES AND NO DEBT
The new budget begins January 1, 2011

"The Anthem Community Council is in a stronger position than many other organizations dealing with the impact of the economic recession" said Jenna Kollings, Anthem's Community Council's executive director.

The council recently approved an $8.6 million budget for 2011 down from $8.7 million for the year 2010. Over $750,000 in savings is realized in the 2011 budget which is good news for the residents of Anthem in recognition of the current economic climate.

To find out what Anthem residents pay in HOA fees goto
http://www.kathleeninarizona.com/anthem-hoa---utility-info-c15577.html

Ecotality To Install Electric-Car Chargers in Public Places Soon

If you live or work near the downtown areas of Phoenix, Scottsdale, Glendale or other neighboring cities, you'll likely see electric-car chargers in public places within the next

year.

Ecotality Inc., which has operations in Phoenix, revealed maps Tuesday that show the most likely regions where it will install the chargers using $114.8 million in stimulus-act "We want to make it possible for somebody with a plug-in electric vehicle to use that vehicle without fear of running out of electricity," said Litchfield Park Mayor Thomas Schoaf, who serves as chairman of the Maricopa Association of Governments, a stimulus project.

Beginning this year, Ecotality will use the stimulus money to provide free chargers for 5,700 Nissan Leaf buyers, 2,600 Chevrolet Volt buyers, and installing additional chargers in public places where those buyers live.

Read the full article here: http://kathleeninarizona.com/archive_details.php?arch=947

Bank of America stops foreclsoures in Arizona

Bank of America, Arizona's largest home mortgage lender, said Friday that it has extended a 23-state moratorium on bank owned home sales to all 50 states while bank officials review the way they process foreclosures.

BofA and other big mortgage lenders are facing mounting pressure over how they handle foreclosure-related documents, with growing attention to reports of incomplete or inaccurate documents that aren't subject to rigorous verification before bank officials sign off on them. The moratorium gives the bank time to review and address concerns about whether foreclosures have been completed properly.

Some Phoenix-area homeowners, lawyers and real-estate professionals said the Charlotte, N.C.-based Bank of America Corp.'s 60-word statement about the moratorium was confusing, vague and potentially hurtful to the battered local housing market.

"Bank of America has extended our review of foreclosure documents to all 50 states," the BofA statement said. "We will stop foreclosure sales until our assessment has been satisfactorily completed. Our ongoing assessment shows the basis for our past foreclosure decisions is accurate. . . . Providing solutions for distressed homeowners remains our primary focus."

After BofA's announcement, U.S. Senate Majority Leader Harry Reid, D-Nev., called on major lenders to halt foreclosures nationwide. He joins a long list of homeowner advocates, lawmakers and state attorneys general who have called for greater scrutiny of the foreclosure process.

In Maricopa County, there are currently 39,042 single-family residences or condos with an active notice of trustee's sale, according to Information Market's analysis, of those, 12,198 pending foreclosures, or 31.2 percent, show Bank of America offices as the beneficiary and ReconTrust as the trustee.

Information Market determined that 4,551 of the 20,850 bank- and government-owned homes currently in its database were BofA foreclosures, which is about 22 percent.
Analysts believe that Bank of America will temporarily suspend foreclosures to prevent a backlog of bank-owned homes from accumulating. This could unintentionally help borrowers who have stopped making payments yet are still living in their homes. For many of these individuals, the payment free periods could extend even longer.

Mesa attorney James Portman Webster said he believes the moratoriums are primarily aimed at helping Bank of America and other lenders rather than homeowners
"It's going to push back foreclosure dates," Webster said. "It's going to put everything on pause temporarily." He said he has a few delinquent clients who have been living in their homes as long as three years while waiting for banks to seize their properties.

The bottom line is, another major delay for the housing market to rebound.
Read more: http://kathleeninarizona.com/archive_details.php?arch=931

Foreclosures due to come onto the market most likely will be delayed due to Flawed Foreclosure Documents

Many of us drive through our neighborhoods passing many vacant homes scheduled to be foreclosed on by the homeowner's lender soon. As a neighbor nearby, you are hopeful to have a new family move into the property soon to care for it and call it "Home".

Well, these properties may just stay empty a bit longer, some experts say as long as 12 months. Due to the volume of paperwork which had been rushed by the desks of the lenders foreclosure departments to help expedite the process to get these vacant homes on the market, has caused a slow down for any rebound in the near future for the housing market. Homes due to go through foreclosure or be purchased, are now being held in a "freeze" in order for a review of "flawed foreclosure documents".

If the homeowner was not paying their mortgage and moved out of the property and their paperwork was not processed correctly were they wrongly foreclosed on?

If they were, can they afford to move back in and catch up on past due payments?
Do they want the property back? What percentage of these foreclosures have homeowners wanting back the property?

If this delay helps those that were paying their mortgages on time and forced out of their homes because of a paperwork mistake, that is great. But I don't think that this is what this is about. It is just another headline to blame lenders for all their wrongdoings and try to hurt them more.

Unfortunately, it is hurting the Buyers purchasing these lender owned homes right now.

Read more: http://kathleeninarizona.com/archive_details.php?arch=930