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 LeFrancis Arnold  Tuesday, December 20th, 2011  Dear Member,
I’m excited to begin my term as your 2012 President, but I first want to thank our outgoing C.A.R. President Beth L. Peerce for serving this organization so well over the past year. She helped keep you, the REALTOR®, at the center of the real estate transaction during this challenging time. Thank you Beth for your service to organized real estate!
Like Beth, I also am a second-generation REALTOR®. I followed my mother into the real estate business in 1976 and became a broker a year later. I have served as a C.A.R. director since 1994. I’m going to continue serving the organization this year by helping you get through the tough economic times and be successful in your business.
But I won’t be doing it alone. I’ll be joined by a very capable 2012 Leadership Team comprised of President-Elect Don Faught, Treasurer Chris Kutzkey, and C.A.R. Executive Vice President Joel Singer. I’m excited to serve with this incredible team.
As one of my first duties, I’m pleased to share with you the good news that the FHA loan limit was reinstated last month so that middle-class home buyers have access to affordable home financing. The higher loan limit expired on Oct. 1, 2011, when it was reduced to $625,500, but now has been restored to $729,750 for an additional two years, through Dec. 31, 2013. However, the higher loan limits for Fannie Mae and Freddie Mac loans were not reinstated. C.A.R. and NAR both have long advocated for making higher loan limits permanent.
Continue reading: C.A.R. Monthly Message from President LeFrancis Arnold
Scott Short Wednesday, May 25th, 2011
 Automated Underwriting Systems (AUS–when the computer underwrites the loan based on specific lender overlays) are unable to determine the existence of extenuating circumstances that resulted in a bankruptcy, foreclosure, deed-in-lieu, pre-foreclosure or short sale (ie: the computer cannot read written extenuating circumstances). If a client has appropriate documentation that these events occurred, the minimum time period has elapsed, and the program does not require an AUS decision, then the loan may be manually underwritten. (If your client is applying for a conventional loan; good luck finding a lender who will take on the risk of manually underwriting a loan). The loan must meet all manual underwriting requirements, including documentation, minimum credit scores and maximum loan-to-value.
To document the existence of extenuating circumstances, the loan file must include all of the following:
- A signed, written statement from the borrower’s third-party and documentation confirming that this was an isolated occurrence that significantly reduced the borrower’s income and/or increased their expenses
- No evidence that the borrowers had unacceptable credit prior to the problems
- Evidence that the borrowers have reestablished acceptable credit with at least four references for at least two years, including one traditional credit reference (an account that would appear on a credit report), and one housing related reference (e.g. a PG&E, SMUD or Comcast bill).
Note: If the derogatory information involved tradeline credit (an account that appears on your credit report), the reestablished credit must also be for tradeline credit. If the derogatory information involved non-credit payment references, either tradelines or non-credit payment references can be used.
- Evidence on the credit report and other credit documentation that the borrower’s present credit is current
- Evidence that no new public records, no 60-day late payments, no more than two 30-day late payments and no housing lates exist for the most recent 24 months
- If the client is unable to obtain thirdparty documentation confirming the extenuating circumstances or reestablishment of credit, the derogatory or adverse credit information cannot be offset.
For a new FHA loan:
Foreclosure:
A borrower whose previous residence or other real property was foreclosed on, sold through a short sale, or was given a deed-in-lieu of foreclosure within the previous three years is generally not eligible.
If the foreclosure was greater than three years prior to the date of the application, and the risk decision (AUS) received is an accept, the loan does not need manual downgrading (manual underwrite in the eyes of FHA means that your ratios are 31% housing /43% debt-to-income) and foreclosure documentation is not required.
Remember, FHA counts from the day the mortgage insurance claim was paid to the lender, not the trustee sale date – sometimes it can take months before the claim is paid. Have your mortgage professional check with FHA to confirm the date the claim was paid.
Steve Goddard Wednesday, October 13th, 2010
 Steve Goddard - 2010 C.A.R. President
Dear C.A.R. Member,
No doubt you’ve heard the news recently that a number of major banks have volunteered to temporarily suspend foreclosures in 23 states and Bank of America is temporarily suspending foreclosures nationwide.
While this situation is changing daily, I want to tell you what we currently know to answer any questions you may have.
- In late September and early October some lenders and servicers began voluntarily halting foreclosures in select states while they reviewed their foreclosure processes.
- So far, only Bank of America has extended its foreclosure moratorium to California, where the vast majority of foreclosures are conducted without a court order. Foreclosures in the other 23 states are processed through the court system.
- Non-judicial foreclosures in California, however, do have legal requirements that lenders must follow. For example, California law requires that lenders for certain mortgage loans made between Jan. 1, 2003, and Dec. 31, 2007, attempt to make contact with borrowers to discuss options for avoiding foreclosure at least 30 days before filing a notice of default. Lenders also must sign a declaration in the notice of default stating that they tried to contact the borrower, made contact with the borrower, or fall within an exception (such as a bankruptcy filing).
- The lenders and servicers that have placed their foreclosure moratorium on properties in the 23 states where courts are involved in the foreclosure process include: Goldman Sachs Group Inc’s Litton Loan Servicing, Ally Financial Inc.’s GMAC Mortgage unit, JPMorgan Chase, and PNC Financial.
- These lenders/servicers have only temporarily halted their foreclosures while they review their foreclosure process. This is in response to findings that questioned whether some lenders/servicers were following the correct procedures to foreclose on a property.
- This halting of foreclosures is a voluntary action taken on the part of these lenders/servicers and has not been mandated by either the states or the federal government.
- Some members have begun to report the immediate impact of this moratorium on transactions that involve foreclosed properties. Delays in escrow and the removal of listed foreclosures are temporary results of this moratorium.
- The immediate impact on the market will be the slowing of home sales, which could put upward pressure on home prices in the short term. The long-term effect on the market is uncertain at this point as it depends how long the moratorium remains in place.
- Assuming the moratorium is lifted in the next month, the flow of REOs to the market should resume, but the uncertainty created by the moratorium may cause hesitation on the part of buyers.
- Federal agencies, including the Office of the Comptroller of the Currency, the Federal Housing Administration, and the conservator of Fannie Mae and Freddie Mac, have asked lenders and servicers to review their foreclosure processes. This review would apply to all states including those like California where the vast majority of foreclosures are non-judicial.
- The participating lenders and servicers believe their internal review processes should take anywhere from a few weeks to 30 days to complete.
Continue reading: Recent Foreclosure Trends and Information
Vicki Cox Golder Tuesday, October 12th, 2010
 To: All REALTORS®
From: Vicki Cox Golder, 2010 NAR President
Date: October 12, 2010
Re: NAR Update: Foreclosures and Bank Meetings
Dear fellow REALTOR®,
Recently, there have been widespread reports of problems related to foreclosures. NAR has sent a letter to regulators expressing our concerns. We also have posted articles and talking points to help you answer questions from consumers and the media. Please visit Realtor.org/foreclosure for the latest developments and additional information.
On a separate note, the NAR Leadership Team has held several meetings during the past two months with the heads of major national banks to discuss problems with short sales and the availability of credit to potential buyers. Our position has always been that we want to help homeowners avoid foreclosure, whenever possible.
Below is a summary of the issues we have asked lenders to address. We also have posted a detailed report for your review on Realtor.org.
http://www.realtor.org/wps/wcm/connect/25887900443d5457b84ef934cafa6d66/gov_aff_bank_meetings.pdf?MOD=AJPERES&CACHEID=25887900443d5457b84ef934cafa6d66
Although we feel the banks have made some progress, it is clear that much still needs to be done. We will be meeting with Chase later this month, and those discussions will focus on the problems with foreclosures and short sales. You can help our efforts by sharing your experiences with NAR via e-mail at HAFA@realtors.org.
We thank you for your continued work on behalf of homebuyers and homeowners, and we look forward to seeing all of you in New Orleans this November.
Continue reading: NAR Update: Foreclosures and Bank Meetings
Daniel Allen Tuesday, June 8th, 2010
The CALIFORNIA ASSOCIATION OF REALTORS® and the Sacramento Association of REALTORS® present
Distressed Properties
(Short Sales, Foreclosures, And Lender REO’s)
Increase Your Knowledge on Distressed Properties and Provide Your Clients with Qualified Professional Help
This course provides you with valuable information on Distressed Properties, including:
- The procedures used in the sale and disposition of distressed properties.
- An agent’s responsibilities in potential business opportunities with sellers, buyers, and lenders.
- Information on how to provide assistance to “short sale” sellers and work with lenders who have foreclosure property, also know as Real-Estate-Owned (REO).
- An overview of the tax/credit impact of REO sales.
This course is Department of Real Estate (DRE) accredited for 4 hours of Continuing Education (CE) in Consumer Protection.
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Continue reading: Distressed Properties course coming this month to Sacramento! Enroll Today!
Steve Goddard Wednesday, December 23rd, 2009
Fannie Mae and Freddie Mac will suspend foreclosure evictions from December 19, 2009 through January 3, 2010. To help struggling families over the holidays, both owner-occupants and tenants living in properties foreclosed upon by Fannie Mae will not be evicted. Freddie Mac’s suspension of evictions will be limited to properties up to four units.
In a similar move, Citigroup Inc. will suspend foreclosure sales and evictions for 30 days through January 17, 2010 for loans it owns. Citigroup’s foreclosure moratorium, however, does not extend to loans it services on behalf of other investors. Given these developments, other lenders may follow suit, so check with the lender if appropriate.
Continue reading: Lenders to Halt Foreclosure Evictions Over the Holidays
Steve Goddard Wednesday, December 16th, 2009
Steve Goddard - 2010 C.A.R. President
Dear C.A.R. Member:
I wanted to bring to your attention some important details about the recently announced Home Affordable Foreclosure Alternatives program (HAFA), which provides instructions for lenders and servicers participating in the Making Home Affordable Program and Home Affordable Modification Program (HAMP).
HAFA helps standardize the short sale and deed-in-lieu process by creating an alternative to foreclosures for homeowners unable to successfully modify their troubled mortgage under HAMP.
Although not perfect, the program reflects C.A.R.’s efforts in the federal arena to standardize the short sale process, protect your business, and safeguard commissions. It also makes clear the timeframes by which servicers must respond to an offer on a short sale.
The HAFA program will permit pre-approved short sale terms before a property is listed; prevent servicers from attempting to reduce real estate commissions established in the listing agreement as a condition for short sale approval; release borrowers from future liability for the debt; and provide financial incentives to borrowers, servicers, and investors.
Continue reading: C.A.R. Update on Home Affordable Foreclosure Alternatives Program
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