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Wednesday, April 8, 2015

FHA Changes

Effective Date: October 1, 2014

The Federal Housing Administration (FHA) requires all pre-foreclosure sales and deeds-in-lieu of foreclosure transactions on properties encumbered with FHA-insured mortgages to be arm’s length transactions. FHA defines an arm’s length transaction as:

a transaction between two unrelated parties;
characterized by a fair market value selling price; with
no hidden terms or special understandings between any person or entity involved in the sale (i.e., buyer, seller, appraiser, escrow, real estate agents or mortgage holder).
The arm’s-length requirement has been clarified to allow real estate brokers and agents to:

serve in more than once capacity in arranging the PFS transaction; and
include customary broker’s fees in the HUD-1 Settlement Statement.
Consideration for the occupant-seller

Owner-occupant sellers may apply to the FHA for a credit of up to $3,000 on the successful completion of a pre-foreclosure sale.

Sellers who, following a cash reserves analysis, are required to contribute cash toward the unpaid principal may apply the $3,000 credit towards their required cash contribution.

Sellers who are not required to contribute cash toward the unpaid principal may use the credit to resolve junior liens, offset sales transaction costs and pay for relocation costs. Use of the credit is to be itemized on the HUD-1 Settlement Statement and paid at closing.

New marketing requirements

Seller’s brokers are required to list and market a pre-foreclosure sale property for at least 15 calendar days before evaluating any offers. After the 15-day period, offers may be evaluated as they are received.

If multiple offers are received, the seller’s broker is required to forward the offer that provides the highest net return to HUD and complies with HUD’s bid requirements to the mortgage holder.

Editor’s note — FHA pre-foreclosure sale bid requirements are found in HUD Mortgagee Letter 2008-43.

Back-up offers are to be held by the seller’s broker until the mortgage holder makes a decision on the offer submitted previously.

All offers submitted to the mortgage holder for evaluation need to be signed by both the seller and prospective buyer. When approving a pre-foreclosure sale, the FHA mortgage holder is to attach a standard Pre-Foreclosure Sale Addendum signed by the buyer, seller, buyer’s and seller’s agents and escrow to the submitted offer.

Tuesday, March 24, 2015

California’s homeownership rate dropped

California’s homeownership rate dropped quickly in the fourth quarter (Q4) of 2014, falling over a percentage point to 53.2%. This is down from 54.6% one year earlier.

The homeownership rate has plummeted from its 60.7% peak in 2006 to its present level. California homeownership is certain to languish below California’s historical rate of 55% for years to come, due primarily to rising mortgage rates.

Sunday, March 15, 2015

HUD has announced new reverse mortgage regulations

Just a quick update!

HUD has announced  new reverse mortgage regulations  (previously dated to go into effect March 2nd 2015) have been delayed until sometime in April 2015.

Currently a senior citizen with equity in their home can (literally) be 1 day away from a trust deed sale, or BK and still can qualify for a cash out refinance or to  purchase their next home   with no qualifying!

That will end in April when seniors will have to qualify based on income, credit and debt to income ratios.

California residents have a shorter period a time as they must participate in mandatory housing counseling which can take up to 2 weeks to get an appt. and then wait for a “7 day cooling off period” to expire.

Senior citizens struggling to keep their home have just a few weeks left to get a reverse mortgage without a financial assessment which may exclude or reduce benefits for up to 50% of reverse mortgage applicants.

Please note: I’m not certified to originate Reverse Mortgages however my contact and friend of many years is.

Wednesday, March 4, 2015


If you have an FHA purchase transaction in process or just beginning one, you (and all of us industry professionals) are in for a wild ride for the next 90-120 days.

Indirectly affected also will be conventional fundings as well as the lending industry is on the verge of a short but intense “refi mania”.

If you are writing an FHA offer try and get a 45 COE (If any lender is promising less than 45 days “beware”).

The ONLY way to close an FHA loan in less than 45 days (currently) is for your buyer to have ALL of their paperwork to their loan officer, well in advance of offers being written.

As per the source:

“FHA is cautioning lenders, buyers and agents they may experience loan processing delays due to an expected upsurge in case number assignments” following the recent announcement of a 50 basis point cut in the annual mortgage insurance premium.

To assist lenders in providing the lower annual premium rates to current loan applicants, the FHA will allow lenders to cancel the current FHA case number for any loan application that has not yet closed and re-order a new one on or after Jan. 26, 2015, when the new premiums take effect.

A cancellation request based on the reduced annual MIP must be submitted on or before Feb. 25, 2015.

Saturday, February 28, 2015

Nevada City and Grass Valley Events

Chinese Lunar New Year Festival Mar 8Nevada City Chinese Lunar New Year Festival Sunday, March 8, 2015 12-3pm Parade at 12pm down Commercial Street; Entertainment, Food and Festivities at Robinson Plaza
NC Gold Raises Funds for NC ChamberNevada County Gold Magazine Raises Funds for the Nevada City Chamber of Commerce Nevada County Gold Magazine recently presented a check for $2512.76 to the Nevada City Chamber of Commerce. This amount represents the commission generated on advertising sales in the 2014-2015 Nevada County Gold Magazine. Celebrating 29 years of publication, “The Gold” has raised […]
Sue LeGate In Concert Mar 6 & 7ONE weekend only, Friday & Saturday March 6th & 7th! Off Broadstreet Theatre presents Sue LeGate, Dave Halford & Darryl Stines in an intimate acoustic evening of music and fun! Sue returns to her theatre “home” to present the music of Peter, Paul, & Mary, Bob Dylan, Woody Guthrie, the Kingston Trio and many more!! […]
Spring Cleaning in Nevada City Mar 31-Apr 2NEVADA CITY’S 1st Annual SPRING CLEANING! Tuesday, March 31st thru Thursday, April 2nd, 8am-Noon! For 3 DAYS downtown Nevada City will be full of volunteers scrubbing, repairing & repainting storefronts, removing graffiti, repainting worn infrastructure & curbs, and giving a general scrubbing throughout historic Nevada City and Pioneer Park! Join this extraordinary effort and earn […]
Wildflower Walks at Bridgeport Start Mar 72015 WILDFLOWER WALKS BEGIN ALONG THE SOUTH YUBA RIVER AT BRIDGEPORT When spring arrives in the Nevada County foothills there is no better way to welcome its arrival than with a walk among the beautiful wildflowers at South Yuba River State Park. State Park Docents will lead guided Wildflower Walks every Saturday and Sunday at […]
Vanya and Sonia and Masha and Spike Mar 5-28SIERRA STAGES presents VANYA AND SONIA AND MASHA AND SPIKE by Christopher Durang 2013 Tony Award® winner for Best Play March 5 – 28 at the Nevada Theatre in Nevada City What: Sierra Stages presents VANYA AND SONIA AND MASHA AND SPIKE When: March 5–28, 2015 Fridays & Saturdays at 8 PM, Sundays (March 15 […]
Be a Volunteer River Guide for SYRCL!Know & Go: What: Volunteer River Guide School When: Spring Guide School: April 18-19, April 25-26, May 2-3, or Summer Guide School: June 4-8 Disability Awareness Training: May 30-31 (required) Where: ETC River Camp on the South Fork of the American River in Lotus, CA Who: Environmental Traveling Companions (ETC) and South Yuba River Citizens […]
’15 NC Film Festival Submissions Now OpenThe award-winning Nevada City Film Festival (NCFF) is pleased to announce that submissions are now open. The 15th annual NCFF kicks off September 10-13, 2015. Since 2001, NCFF has brought top independent film, music and comedy, along with attracting thousands of attendees, international filmmakers, and industry guests to the historic Gold Rush era town of […]
Upcoming Events at The CenterLook for these events and more at The Center for the Arts
Harmony Ridge Lodge Winter Season Specials!Enjoy amazing savings, February thru April, at our luxury bed and breakfast nestled in the forest just five minutes from downtown Nevada City…. Book now for Valentines, Mardi Gras, and early Spring weekends! • 530-478-0615
M3Mall Spring PageantLooking for Contestants ages 3-103 Business Sponsors, Advertisers & Volunteers Become a Queen In 2015! Applications Due Now Contact

Tuesday, February 24, 2015

Number of homes repossessed by banks in California nearly tripled in December

There should be a (albeit brief) flood of new listings coming onto the market!

In time for the height of the spring selling season “foreclosures” (actual trust deed sales) in So Cal hit their highest level in two years in January, according to new data out Feb 13th.

The number of homes repossessed by banks in California nearly tripled in December to the highest level since December 2012, according to data firm RealtyTrac .

It appears it's more a matter of lenders clearing their books than a new wave of bad loans.

According to RealtyTrac: Banks are finally adjusting to California's year-old Homeowners Bill of Rights, which offers new protections for mortgage holders and prolongs the foreclosure process.

And that's pushing a wave of repossessions through the pipeline right now.

The number of notices of default - which start the foreclosure process - remains roughly at the level it's been for the last six months.

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