Mortgage lenders are in the news again and again but this time it’s just not only Freddie Mac and Fannie Mae in the hot seat. If you purchased a home using any of the following lenders like GMAC (now Ally Financial), Bank of America, JPMorgan Chase, or Citibank, you may want to take note.  Last month’s settlement of $25 billion is proposed to aid homeowners who may have been subject to “robo-signing,” in loan and foreclosure practices. “Robo-signing” refers to the practice of mortgage providers signing or stamping documents without verifying any information. If you currently have a loan or experienced a foreclosure with one of these lenders, you may be eligible to receive assistance.

The new agreement, authorized in 49 states (not Oklahoma), strengthens the review process on loan modifications and foreclosures by requiring application reviews prior to beginning the foreclosure process. Excessive fees, insurance costs, and appraisal rates also received limits, and the agreement also provided avenues for principal reduction for struggling homeowners. This agreement does not apply to any FHA, Freddie Mac or Fannie Mae loans or foreclosures which is good for our area as most loans before the melt down weren’t made by either Freddie, Fannie or FHA in San Mateo County.

Homeowners with a mortgage on their primary home that represent a 20 percent or more reduction on property value and with a loan balance of less than $417,000 are targeted for these funds, although eligibility will be determined individually. Homeowners whose mortgage interest rates are above 5.25 percent may be able to refinance to lower interest rates, and homeowners experiencing unemployment or considering short sales may receive aid, as well.

Contact your lender directly to see if you are eligible or watch for a notification letter from your lender within the next six months. Incentives were provided to lenders who completed settlements within 12 months, and funds must be dispersed within three years. Click here to see actual details of the agreement.

Additionally, San Francisco’s Assessor has done extensive research on foreclosures that took place in the City over the past several years and feels that most were done fraudulently. What this means for you if you lost your home or bought one in San Francisco that was a foreclosure isn’t known at this time.  We can be pretty sure this same thing happened throughout San Mateo County, too.

This is such a huge mess that it will take years and years to fix it.  Right now Sacramento is busy trying to pass some bills to start the ball rolling to protect California residents.  Keep your eyes and ears open about this as it could affect you if you lost your home or bought a distressed property.  I’ll write more about this as we hear more.

Here are some homes for sale in San Mateo today.

Showing properties 1 - 20 of 24. See more city of San Mateo real estate.
(all data current as of 5/24/2012)

1. $678,000 : 2915 Fernwood St, San Mateo
   
   2 beds, 1 full bath

   Home size: 1,060 sq ft

   Lot size: 5,040 sqft

   Year built: 1951
   
2. $650,000 : 1707 Eleanor Dr, San Mateo
   
   3 beds, 2 full baths

   Home size: 1,400 sq ft

   Lot size: 5,000 sqft

   Year built: 1955
   
3. $699,000 : 251 N Claremont St, San Mateo
   
   2 beds, 3 full baths

   Home size: 1,070 sq ft

   Lot size: 5,175 sqft

   Year built: 1937
   
4. $895,000 : 3129 Monterey St, San Mateo
   
   3 beds, 1 full, 1 part baths

   Home size: 1,500 sq ft

   Lot size: 5,225 sqft

   Year built: 1951
   
5. $890,000 : 337 Greenfield Av, San Mateo
   
   3 beds, 3 full baths

   Home size: 2,540 sq ft

   Lot size: 5,200 sqft

   Year built: 1951
   
6. $725,000 : 1009 Sunnybrae Bl, San Mateo
   
   3 beds, 2 full baths

   Home size: 1,640 sq ft

   Lot size: 7,050 sqft

   Year built: 1946
   
7. $749,000 : 409 E Bellevue Av, San Mateo
   
   3 beds, 4 full baths

   Home size: 1,900 sq ft

   Lot size: 7,500 sqft

   Year built: 1920
   
8. $822,800 : 1152 Wayne Wy, San Mateo
   
   3 beds, 2 full, 1 part baths

   Home size: 1,690 sq ft

   Lot size: 2,564 sqft

   Year built: 2000
   
9. $699,000 : 952 E Grant Pl, San Mateo
   
   5 beds, 2 full baths

   Home size: 1,730 sq ft

   Lot size: 4,750 sqft

   Year built: 1939
   
10. $799,000 : 3528 Broadview Ct, San Mateo
    
    3 beds, 2 full, 1 part baths

    Home size: 1,780 sq ft

    Lot size: 2,958 sqft

    Year built: 1986
    
11. $949,800 : 267 36th Av, San Mateo
    
    3 beds, 2 full, 1 part baths

    Home size: 2,020 sq ft

    Lot size: 5,000 sqft

    Year built: 1948
    
12. $659,000 : 2253 Portsmouth Wy, San Mateo
    
    3 beds, 2 full baths

    Home size: 1,330 sq ft

    Lot size: 4,992 sqft

    Year built: 1956
    
13. $650,000 : 221 28th Av, San Mateo
    
    2 beds, 2 full baths

    Home size: 1,810 sq ft

    Lot size: 5,880 sqft

    Year built: 1939
    
14. $670,000 : 2221 Portsmouth Wy, San Mateo
    
    3 beds, 2 full baths

    Home size: 1,530 sq ft

    Lot size: 5,000 sqft

    Year built: 1956
    
15. $875,000 : 1765 Lake St, San Mateo
    
    4 beds, 3 full, 1 part baths

    Home size: 1,960 sq ft

    Lot size: 8,280 sqft

    Year built: 1960
    
16. $948,888 : 640 Fathom Dr, San Mateo
    
    3 beds, 2 full, 1 part baths

    Home size: 1,860 sq ft

    Lot size: 2,522 sqft

    Year built: 1967
    
17. $848,000 : 626 Pico Av, San Mateo
    
    3 beds, 2 full baths

    Home size: 1,399 sq ft

    Lot size: 5,000 sqft

    Year built: 1949
    
18. $849,900 : 445 W 23rd Av, San Mateo
    
    3 beds, 2 full baths

    Home size: 1,560 sq ft

    Lot size: 5,500 sqft

    Year built: 1951
    
19. $939,000 : 461 W 25th Av, San Mateo
    
    4 beds, 3 full baths

    Home size: 1,720 sq ft

    Lot size: 5,000 sqft

    Year built: 1956
    
20. $799,000 : 3985 Oneill Dr, San Mateo
    
    5 beds, 3 full baths

    Home size: 2,320 sq ft

    Lot size: 5,000 sqft

    Year built: 1950
    

Listing information deemed reliable but not guaranteed. Read full disclaimer.

If you find yourself in a no-win situation regarding your mortgage, it can be helpful to speak with your lender and ask about loan modifications that can be made in the short term.  You can ask about the short sale process, too, and see if that may be a viable option for you.  A short sale is when your lender agrees to accept a lower price than is owed on your property as payment in full.  There is a lot of paperwork that accompanies this type of sale and it is helpful to use a real estate agent that has short sale experience with this type of transaction.  In fact, some real estate agents like us, and some home buyers, specialize in just this type of sale and can be a great help to you!

If you want to stay in your home, rather than sell, programs such as the Home Affordable Refinance Program (HARP), Home Affordable Modification Program (HAMP) , or the Home Affordable Foreclosure Alternative (HAFA)  offered by Freddie Mac may all be options.  Fannie Mae and your individual lender may have other programs that can assist you as well.  Please click here to view a variety of tools on how to avoid foreclosure.  Remember that you do have options, if you are willing and able to face them.  It will take time to explore them but don’t give up!

If you would like to talk to a certified expert on short sales and foreclosures, Alex Wilkas is just the person to call.  Our number is at the top of this page.  Call us so we can walk you through the options you have before it’s too late and you lose your largest life investment, the home you and your family are living in.  San Mateo County is one of a handful of counties in California that hasn’t seen a great deal of foreclosures but short sales have been plentiful.  Don’t be embarrassed to talk to us about this.  We are here to help you.

How to Escape the Grip of Foreclosure

No one wants to be in the situation of losing their home because of a mortgage interest rate reset. The reality is that millions of Americans across the country are struggling with unaffordable mortgage payments, and more than ever lenders are motivated to work with homeowners to come to a resolution. We can help advise you of your options and show you how to create a strategy that will loosen the hold that foreclosure has on your future.

You have options

When you began struggling with your mortgage payments, you may have felt that you had no way out of the situation, but you actually have many different options. We will guide you through the process of finding which option is best for you. By discovering and acting on your options, you’ll have the leverage to escape the grip of foreclosure.

Your Foreclosure Alternatives Include:

• Short Sale
• Reinstatement
• Forbearance or Repayment
• Mortgage Modification
• Rent the Property
• Deed-in-Lieu
• Bankruptcy
• Refinance
• Service members Civil Relief Act
• Sell the Property

Relieve the Stress

When you owe more on your home than it’s worth, and are struggling to make payments, the pressure you feel can go through the roof!  If you are in a situation where your expenses exceed your income, have a verifiable financial hardship, and no other assets to pay off the balance of your mortgage, you may qualify for a loan modification or short sale.

We can help relieve the burden of an overwhelming mortgage by showing you ways to execute a dignified solution.

Do You Qualify For A Short Sale?

Do you have…

• Financial Hardship: severe illness, military service, insurance or tax increase, etc. (Ask us for a full list of acceptable hardships)
• Monthly Shortfall: business failure, job loss wage reduction, divorce, etc.
• Insolvency: you currently owe more money than you have, or you are about to reach that point

If you answer YES to the above questions, you may qualify.

Calm your fears!

You may be anxious about whether your lender is motivated to work out a solution with you. The reality is that lenders lose much less in a short sale or loan modification than they do in foreclosure. The cost of foreclosure may cost your lender up to 50% of the loan amount while a short sale could only cost them from 15-30%.

What Does It All Mean?:

SHORT SALE
A short sale is when the lender agrees for the property to be sold at a price lower that the mortgage balance owed.

DEED-IN-LIEU
A deed-in-lieu is when the lender receives the house deed in place of the mortgage balance, although in some cases the lender will still pursue the homeowner for the leftover mortgage balance, which is called a deficiency judgement.

A short sale or deed-in-lieu through the government’s (HAFA) Home Affordable Affordable Alternative Project prohibits the participating lender from pursuing a deficiency judgment.

SHORT SALE BENEFITS
The financial implications of short sales are always less severe that the implications of foreclosure. Your credit score, credit history, employment applications, and future chances of acquiring a loan are all benefit from completing a short sale rather than being foreclosed upon.

Our job is to facilitate cooperation and communication between you and your lender and work toward the best solution for everyone. Knowing this should help you breathe a little easier when starting this process.

Call Us Today!

We know that you are grappling with unfortunate circumstances, and dealing with all the emotions that come with it. We are trained to guide you through this process, help you to restore hope, and empower your future.  You are not alone in this situation.

We Are (CHS) Certified HAFA Specialists, (CDPE) Certified Distressed Property Experts) and (SFR) Short Sales & Foreclosure Resource Specialists.

We are here to help.

We’re into the January gloom. Both in weather and in real estate.  Our local market really starts coming to life the end of January and sometimes as late as right after Super Bowl Sunday.  If you’re a serious buyer you already know most of what’s on the market right now is either a short sale or a bank owned property.  If a new listing comes out and isn’t a short sale or bank owned it might be one soon, if they can’t get their price.  January is also one of the two months where prices are the lowest in the year.  Prices begin to go up in the spring.

What’s better to buy?  A Short Sale might be a great way to get a home under market value if you’re willing to wait a little more than normal.  Often though, the wait can be longer than that because the wait is determined by several things.  First, the number of loans on the property you’re considering.  If there’s only one loan this will be a fairly smooth and close to normal transaction for you and the seller.  Two, if there is more than one loan, such as a second and a HELOC (line of credit) and they are with the same bank, it will be longer but not a killer.  Three, if more than one lender is involved, all bets are off and it can take from several months to never.  The banks in second and third position must agree to taking a minimal amount as a payment and many aren’t willing so the force the property into foreclosure.

Buying a Short Sale is really buying all the debt left behind by the seller.  That includes past due property taxes, homeowners dues if they apply, and repairs that are needed to the property to make it inhabitable.  The people selling “short” have gone through extensive proof for the banks to assure the lenders the borrower has no money to pay them.  There are never concessions with the seller in these instances and sometimes additional fees for the buyer to pay for a specialist in negotiating with the banks to make sure the deal closes.

Bank Owned properties, also referred as REO’s, come with their own issues.  The day of getting a great buy below market are gone.  The last time you could really get this was in 2009.  Today bank owned properties are priced about 5-10% below market and the banks will negotiate only if the property has sat on the market for a while.  We are really seeing multiple offers on the houses that are in pretty good condition so prices often move up, rather than down.  Banks often want the buyer to be pre-approved through them and if you elect to use them for your loan, give small concessions for a free appraisal which is a $450 savings and sometimes cut fees for the application.  You are not required to use them.  You can use your own lender.  They used to force you to use their Title and Escrow company but California passed a law outlawing this practice last year so you may use the Title and Escrow company of your own choice.  What the banks are doing now is offering to pay some of the title fees if you agree to use their company.  Sometimes it’s worthwhile and sometimes a nightmare.

Like buying a Short Sale, what you see is what you get with some exceptions.  Some cities have laws requiring banks to bring property into compliance for zoning so the bank will do so.  They must make sure all statewide requirements are met including strapping the hot water heater, new smoke detectors and any other requirements.

If you’re looking at buying a new home in 2011, congratulations on the decision.  Just don’t wait too long.  Interest rates are going to go up.  The window of 4% loans is going to go the way of history and when it does your buying power will have shrunk. Buying a distressed property is an adventure and you should look for an agent who is skilled in handling these sales.  Look for the SFR and CDPE designations with the agent’s name to know they have taken extensive classroom education and ask if they’re experienced in listing and selling distressed property.  You need to be protected by a knowledgable agent.

Here are some of the short sale and bank owned San Mateo listings.

Showing properties 1 - 8 of 8. See more SM short sales and REOs.
(all data current as of 5/24/2012)

1. $499,900 : 1644 S Norfolk St, San Mateo
   
   3 beds, 2 full baths

   Home size: 1,410 sq ft

   Lot size: 5,814 sqft
   
2. $406,000 : 1016 Norton St, San Mateo
   
   3 beds, 2 full baths

   Home size: 1,110 sq ft

   Lot size: 7,500 sqft
   
3. $499,000 : 3821 Edison St, San Mateo
   
   2 beds, 1 full bath

   Home size: 1,040 sq ft

   Lot size: 5,490 sqft
   
4. $475,000 : 132 Ottawa St, San Mateo
   
   3 beds, 1 full bath

   Home size: 1,140 sq ft

   Lot size: 4,750 sqft
   
5. $650,000 : 221 28th Av, San Mateo
   
   2 beds, 2 full baths

   Home size: 1,810 sq ft

   Lot size: 5,880 sqft
   
6. $450,000 : 311 N Kingston St, San Mateo
   
   3 beds, 1 full bath

   Home size: 1,000 sq ft

   Lot size: 5,000 sqft
   
7. $425,000 : 1841 Royal Av, San Mateo
   
   3 beds, 2 full baths

   Home size: 1,080 sq ft

   Lot size: 5,304 sqft
   
8. $750,000 : 3734 Hacienda St, San Mateo
   
   2 beds, 2 full baths

   Home size: 2,000 sq ft

   Lot size: 5,830 sqft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

This is the ForeclosureRadar chart for all of San Mateo County foreclosure filings for the past 12 months and you can see the Notice of Default (NOD) and Notice of Sale (NOS) are almost equal.  Unless your head has been in the sand, you’re likely aware that the major banks stopped issuing NOD’s several months ago because of Robo Signing issues.  These issues aren’t totally cleared up the the major banks are gearing up to send out the notices in 2011.  So hold on to your hat when the flurry of NODs hits the mail.  It will be a storm of activity.

Now let’s look at the same data for  the city of San Mateo. It looks a little different than the County’s data.  More activities here but there are NO deals. Those are gone.  You can buy a foreclosed property in San Mateo under market price but not dramatically so.  The banks want to see these properties listed near to market so they can recapture as much of their losses as possible.  One really can’t blame them as they’ve lost billions of dollars due to the stupid  lending programs they pushed, can one?

What this chart isn’t showing you is that there are currently 46 properties in foreclosure in San Mateo, 134 properties that are going to go to auction sometime soon, and 136 properties in pre-foreclosure (those receiving NODs).  These are the hidden numbers for the City of San Mateo today, 450 properties that may show up for sale by banks.  I use the word may because some will find funds to pay the bank back and some will sell on the market before the bank forecloses. These properties are in all of the zip codes for the city of San Mateo and are comprised of condos, townhouses and single family houses.

San Mateo,CA – Foreclosure Filings

Let’s take a look at Burlingame and Hillsborough data.  The two towns are combined because they share the same Zip code and ForeclosureRadar’s data is zip centric for this chart.  NOD’s are up over sales by November 2010.

Now for the hidden numbers for Burlingame and Hillsborough.  Burlingame has 5 foreclosed properties, 22 going to go to auction soon, and 21 in pre-foreclosure, for a total 48 distressed properties.  Hillsborough has 3 foreclosed properties, 11 going to go to auction soon, and 7 in pre-foreclosure, for a total of 21 distressed properties.  In Burlingame there are a few condos in this total but mostly single family homes.  In Hillsborough, all are single family homes of substantial size.

94010 – Foreclosure Filings

Finally, let’s not forget Foster City. It too has had activity this past year.  NODs are up but NOS are down.  For the moment that is.  Foster City has 8 bank owned  properties, 26 going to go to auction, and 39 in pre-foreclosure status, for a total of 73 distressed properties. These properties are made up of condos, townhouses and single family houses.

The big question is what’s coming.  We know of Shadow Inventory, a term for houses that have been foreclosed and are bank owned but not on the market.  The banks are holding them off, for some unknown reason.  Perhaps it’s the same reason they’re giving for making lending so impossibly difficult today.  We also know that prices for the bank owned properties are going up from last year’s incredible bargains.  If you are an investor and have cash, you might do okay, and something pretty good deals.  If you’re the average buyer who still needs a loan, should you try to buy a bank owned rather than a short sale?  I’d go for the short sale right now.  Those prices are generally better, you negotiate with the owner and not the bank but you must be patient and be willing to wait it out for the bank to approve the offer and if there are more loans on the property than the mortgage expect it to take even more time as the listing agent must negotiate with all banks connected to the property.  It can be a great way to get a property under market value today.  As for tomorrow and 2011, my crystal balls are a little cloudy today, like the weather.

If you are one of the multitude of homeowners sitting with this kind of mortgage you have a couple of choices.  First, refinance it immediately.  Second, if you are unable to do so, get your home ready for resale and get it on the market this spring.  Yes, it will be under water, and yes you will need to go through the process of applying for a loan modification with your lender.  If you are denied, as most appear to be, ask for a short sale and find a Realtor with suitable experience and training to help you.  We are CDPE trained and SFR trained.  These are the Cadillac of certifications for short sales.  Do not wait to sell, get ready to do it this spring because there will be much competition for short sales.

Another consideration for you.  If you sell you home in a short sale, you can buy a new one within 90 days using a conforming FHA loan.  This means you will be in a home around $900,000 and there are many to select from in our area.  You may have to swallow your pride in reducing your home size and location but at least you can still own a home without the tax ramifications of a foreclosure.

Do you want more information on how to do this?  We’re here to answer your questions so go here for more help.

]]> http://wilkasgroup.com/its-crystal-ball-time-whats-the-market-doing-in-the-san-mateo-ca-area/feed/ 0 http://wilkasgroup.com/have-you-missed-a-house-payment-do-you-need-help-burlingame-ca/ http://wilkasgroup.com/have-you-missed-a-house-payment-do-you-need-help-burlingame-ca/#comments Fri, 22 Jan 2010 23:39:18 +0000 Alexander Wilkas http://wilkasgroup.com/?p=19230

San Mateo County residents who are under water today have an additional problem to content with because banks aren’t being forthcoming with us.  Are you wondering why you can’t get your loan modified?  Are you wondering why every time you call they can’t find your file?  What  about the voices of the people you’re talking with, do they have strong accents making it hard for you to sometimes understand them?  There’s a reason this is happening and it’s not to help you, but to help the bottom line of your lender. These people you’re trying to talk with don’t live and work in the US, they live and work off shore, mainly in India, but also in some other countries, too.  The worst offender doing this is Bank of America but they’re not alone as most of the major banks are doing the same thing. They are doing this to save money but according to year end reports, almost all banks made record profits last year and off-shoring added to their profit line.

The only bank NOT doing this is Wells Fargo, who incidentally only uses US citizens and doesn’t consider off-shoring as an option.  Thank you Wells Fargo.

Right now the bankers are sitting and testifying in Washington about their obscene bonuses and this should become a part of that discussion.  These banks aren’t out to help you, they’re out to help their bottom line.  If you don’t like this, call Jackie Speier’s office if you live in her district, or your own Congressional Representative where you live.  Then call your US Senators and complain loud and clear that this must stop.

I believe the only way to stop it is to write a law prohibiting off-shoring for all banks. No matter what you are told about privacy laws,  they don’t matter outside the continental United States boarders.  You are, as they say, up a creek without a paddle should your information – think social security numbers – get lifted.   Our laws only count within the continental US border and not in another country.  This won’t stop unless we make it known.  Will you help me with this?

Like our other communities last year didn’t see a lot of sales, even after the banks opened up their lending and gave out loans rather than moths, but prices have been pretty good.  There haven’t been a lot of short sales or REO’s, yet.  We know there will be some, but not sure how many.  Foster City is one of the few places one can buy entry level, and move up within the community.  If you are thinking about buying a short sale or REO in order to get to Foster City from somewhere else, you need experienced agents working these tricky deals.  The Wilkas Group is experienced and trained in the nuances of short sales and bank owned sales.  Whether you are buying or selling we know how to help you achieve your real estate needs.

Charts are great but you need hard numbers to really understand them so take a look at the real picture of Hillsborough CA’s market this past year.  We saw about 10% of the listings sell and it takes a long while for these listing to sell.  The houses for sale are seeing price reductions in most, but not all cases.  The difference between the Median list price and the Median sold price is 23% so someone hasn’t figured it out yet and that’s the seller.  Be patient and you’ll get your deal but be sure your house has been sold before even making an offer in today’s market.