Real Estate Agent – Orange County, California – Pat Monahan

The market for Orange County real estate has seen a turn around lately. Properties are selling more quickly, many with multiple offers and some for all cash! The most activity is in the price range below $600,000. The fiercest buyer competition is in the under $400,000 price range where first-time home buyers with low down-payments are competing with seasoned investors with cash. The REO and short sale listings are attracting offers within the first few days on market. If you want to purchase coastal real estate in Orange County, be ready to act fast, have statements to prove your purchase-cash and/or be pre-approved for a loan with a direct lender. Buyers who qualify under FHA guidelines must compete with all cash buyers. Be ready to offer above asking price and accept the property in “as is” condition.

Equity sellers who have maintained and up-graded their home may benefit from this buying frenzy, if they are willing to price their home competitively. Special marketing is essential with strong internet presence and the creative techniques of the “New Rules” of real estate. I know how to utilize the “New Rules” and I can provide you with the internet presence that will get your home widely seen. Learn how you can benefit from this specialized knowledge.

If you are having difficulty making your current mortgage payments, contact your lender before you fall behind in your payments. Ask if you qualify for a loan modification from your lender. If you do not, then you have options. Call me to find out about your options. I can help you steer a path in this sea of confusion and shine some light in the right direction. I can be reached at 714-932-5529.   

On March 4th, the Administration released guidelines for homeowners to determine if they qualify for the new Making Home Affordable program. This program will offer assistance to as many as 7 to 9 million homeowners to support a recovery in the housing market. It will target support to working homeowners who have made every possible effort to stay current on their mortgage payments.

The three basic plans of the program are:

1. 1. A Home Affordable Refinance Program for responsible homeowners suffering from falling home prices.
2. A comprehensive $75 Billion Home Affordable Modification Program to reach 3 to 4 million homeowners with loan modifications that are a shared effort with lenders, loan servicers and borrowers.
3. Support Low Mortgage Rates by strengthening confidence in Fannie Mae and Freddie Mac

 The plan’s two primary goals are

1. To help homeowners in existing Fannie Mae and Fredie Mac loans that are current on their payments to refinance to lower interest rates. Qualified homeowners will be allowed to refinance up to 105% loan-to-value of the current value of their home.
2. To help homeowners who are at risk of foreclosure by offering loan servicers and investors government assistance to help offset the cost of modifying loans. This may be achieved by reducing the mortgage interest rate, extending the term of the loan, principal forebearance or principal cramdown. This program is voluntary and the servicers must agree to contracts with the Treasury to participate.

Some restrictions apply: Only owner-occupied homes qualify and home mortgages no greater than $729,750 will be eligible.

In addition, homeowners are warned to beware of foreclosure rescue scams:

- There should never be a fee charged for information or assistance regarding the Making Home Affordable Program.

- Beware of anyone who says that can “save” your home if you sign or transfer over the deed to your home. Do NOT sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

- Never make your mortgage payment to anyone other than your mortgage company without their approval.

The above information was provided by the U.S. Department of the Treasury and the California Association of Realtors newsletter.

If you or someone you know needs help with a loan modification or has questions about staying in their home, contact me for a free consultation.  I can be reached at pat@patmonahan.com or call 714-932-5529.

Time is of the essence if you are an owner of real property and are facing the possibility of a distressed sale or foreclosure of your property.  It is strongly recommended that you seek the advice and guidance of qualified professionals such as an independent attorney at law, consumer credit counselor, a certified public accountant, tax consultant or a qualified foreclosure/loan mondification consultant about your unique circumstances.

These types of professionals or consultants can help you to evaluate, consider and decide many issues and potential remedies. Some options are:

• Modify your loan(s)
• Consider a short payoff of loan(s)
• Attempt a short sale of the property
• File for Bankruptcy
• Allow a foreclosure to proceed

A workout can include special forebearance allowing the delinquent payments to be recapitalized or added to the end of the term or forgiven. 

A loan modification may allow a change to one or more terms of the loan such as interest rate, length of time of the loan, amortization, and/or loan balance.

A short payoff settlement specifically applies to Second Trust Deeds where the lien must be completely unsupported by equity, and you must have funds to settle with the typical amount needed of 5% to 15% of the balance owed. The property need not be sold.

A short sale is a transaction in which a lender allows the real property securing the loan to be sold for less than the remaining mortgage amount and accepts the proceeds as payment in full of the loan. Some lenders are reluctant to offer this language. Work with a professional real estate agent who knows how to obtain this forgiveness from the lender.

It is important to know that the loan modification process is a 45 to 90 day process; principal reductions are rare occurrences (3% – 4% of cases); a property owner with a Trustee Sale Date less than 30 days away is too late to help. So if you are behind in your payments, have been served with an NOD (Notice of Default), or have a financial hardship that will expose you to an NOD, seek help immediately.

Hardships can be loss of work, job transfer, divorce, a health related incident affecting the wage earner directly or a loan product problem such as a loan with balloon payments or an ARM adjusting to a high interest rate.

Don’t delay. Get the facts. Call Pat Monahan at (714) 932-5529 for a free consultation.

There is help available for struggling mortgage holders. Where to look for it is the question. Here are some suggestions:

FREDDIE MAC LAUNCHES NEW WORKOUT PLAN FOR HIGH-RISK LOANS
Freddie Mac yesterday announced a new Workout Strategy For High Risk Loans pilot program designed to keep more at-risk borrowers in their homes by employing third-party servicers that specialize in servicing Alt-A and other types of higher risk mortgages.Under the new pilot, a selected portfolio of higher risk mortgages that is at least 60 days delinquent will be given to a specialty servicer for intensive attention using the full range of Freddie Mac workout opportunities, including the Streamlined Modification Program developed with the Federal Housing Finance Agency, Fannie Mae, and the HOPE Now Alliance, according to a Freddie Mac statement.

Here are some agencies established in Orange County CA. to assist the struggling homeowner with questions about loan modication and workout strategy:

There are many folks who are carrying “at risk” loans that are due to reset in the next year or two. At risk loans are typically adjustable rate mortgages (ARM) with 20% or less down-payment or a loan with a balloon payment in 2 to 5 years or option AMR’s where less than full payment is being made.  Another type of “at risk” loan is where the mortgage holder is faced with a hardship such as job loss, job transfer, divorce, a health issue where mortgagee is unable to work and using credit cards or savings/401k reserves to make mortgage payments .  A hardship could also be a “loan product” problem.  As everyone is a unique individual, every hardship is unique as well. If you are struggling with your payment, seek help!

In all of these cases the mortgage holder should ask the lender’s customer service department about their loan modification policy.  Make an appointment to meet with the lender’s representative to explain your hardship and request the lender’s help in modifying the terms of the loan.  It is so important to get expert mortgage advice. If you are having difficulty paying the mortgage, help is available. And, that help may become even more available in the coming months as Congress is voting to secure funds to assist the struggling homeowner. Don’t wait to seek help.

I can provide you with valuable contact information if you cannot get your lender to listen to you. Right now, all lenders are overwhelmed and are slow to respond. Be persistent. It may also be beneficial to talk to your tax adviser.  Know your options and make informed decisions.

Call me for a FREE consultation. Find out about the “new rules” of real estate with no obligation. I can be reached at 714-932-5529 or email me at pat@patmonahan.com