This video report is from our Southern California KCET’s SoCal Local Connected blog.  It pointedly illustrates the impact of the foreclosures affecting our Southern California’s Inland Empire community. 

“Foreclosure is becoming a way of life in California with repossessed homes now dominating the real estate market.  One in every two homes sold last month in Southern California had been repossessed,” host Val Zavala recites in the story’s introduction. “Or to look at it another way, 700 families lose their homes every day.  One of the hardest hit areas is the Inland Empire.”

The story begins with a crew that removes everything left behind in recently foreclosed homes.  Families whose dreams of home ownership have become a nightmare leave behind pieces of that dream, including big-screen televisions, computers, furnishings, clothes, toys and family photos. The owner of the company that does these Trash Outs, as they have come to be known, says he has found everything from birth certificates to an urn with someone’s remains in homes that his company has Trashed Out.

The business owner says his business has grown from three employees a few years ago to 73 employees today; His company now cleans out an average of 15 foreclosed homes a day. He say he tries to donate things of value, but has trouble coordinating the donations and since he cannot leave anything behind, even valuable items often get thrown away.

The video also touches on a new practice of spray painting brown lawns green outside foreclosed houses, a family that is the lone holdout on a suburban cul de sac filled with Foreclosures and Short Sales, and finally two code enforcement officers who drain an abandoned pool of stagnant green water to discourage it from becoming an issue for mosquito breeding and West Nile virus.

Property Description

This Highland Home Boasts a Sparkling Pool and Bubbling Spa Great For Family Weekend Summer Fun; Give Your Family Room to Relax With 4 Spacious Bedrooms, 3 Baths, The Master Bedroom Has Large His And Her Closets; The Family Room Encourages Family Gatherings With It’s Cozy Fireplace And The Great Gourmet Kitchen Invites Meal Preparation In An Open Entertaining Environment; Newer Paint And Carpet, With A Little TLC This Could Be A Wonderful Place To Come Home To!

Property Description

A LITTLE TLC AND YOU HAVE A GREAT OPPORTUNITY TO LIVE IN RIALTO’S PREMIERE COUNTRY CLUB COMMUNITY. THIS SPACIOUS HOME BOASTS
4 SPACIOUS BEDROOMS AND 3 BATHS, FAMILY ROOM WITH FIREPLACE AND OFFERS PLENTY OF ROOM FOR YOUR GROWING FAMILY.

Features List

•Large Front Yard
•Fireplace
•Wet Bar

•RV Access
•Formal Dining Room
•Laundry Room

On October 11, 2009, Governor Schwarzenegger signed Senate Bill 94 (Calderon), and the legislation took effect immediately upon his signature.  Thus, California law now prohibits any person, including real estate licensees and attorneys, from demanding or collecting an advance fee from a consumer for loan modification or mortgage loan forbearance services affecting 1-4 unit residential dwellings.

IF YOU ARE A REAL ESTATE BROKER, OR THE DESIGNATED OFFICER OF A LICENSED CORPORATION, WHO HAS BEEN ISSUED A “NO OBJECTION” LETTER BY THE DEPARTMENT OF REAL ESTATE FOR LOAN MODIFICATION OR OTHER MORTGAGE LOAN FORBEARANCE SERVICES, YOU CAN NO LONGER ENTER INTO THESE AGREEMENTS EFFECTIVE AS OF OCTOBER 11, 2009, NOR CAN YOU COLLECT ANY ADVANCE FEES FOR SUCH SERVICES.

Agreements already entered into or advance fees collected prior to October 11, 2009 are not affected.  Advance fees inadvertently collected after October 11, 2009 must be fully refunded.

Read more by clicking the link below
http://www.dsnews.com/articles/schwarzenegger-institutes-nine-new-mortgage-laws-2009-10-13

• Typing in a query like ‘REO Homes for Sale in Rancho Cucamonga’ into Google Maps will plot available properties on the map.
• The best match of results will be displayed with alphabet markers while other nearby properties are displayed as small circles.
• Hovering your cursor over a marker will pop-up property information.

Google aggregates data from various sources, not just directly from the MLS’s. Don’t expect the results to always be up-to-date or 100% accurate.

While this functionality is nothing new for Google, they have now made it more accessible to the average consumer; this seems to indicate a renewed focus on the real estate market. Even though Google is a long way from competing with established search leaders like Zillow.com and Realtor.com, they have a history setting the pace on technology- so keep an eye on this.

Popularity in the 203(k) FHA loan program, or Rehab loan as it is often called, has nearly doubled since last year due to the large inventory of REO homes. This years, demand is on pace to double again.

The main advantage of this program is it allows buyers to purchase a home that needs work and not have to come out of pocket with cash to complete the repairs.  The biggest disadvantages is most lenders aren’t experienced with Rehab loans and show little interest in promoting them because they can take up to 60 days to close.

Even though the application process is long and it is difficult to find a lender versed in doing them, the FHA Rehab loan may the rare modern-day wild card loan that keeps the industry afloat. Helping our Buyers get the best deals, often in area they otherwise couldn’t afford, and helping us close on more deals . . . sounds like a win-win to me!

If you are a buyer thinking about purchasing an REO, don’t let the need for repairs scare you away.  You have options and we have a great lender that can help you explore them!

FYI – I have an REO with Wells Fargo right now that is a perfect candidate for this financing.  I’ll let you know how it goes.

Now, borrowers will be able to lower their principle on their loans by up to 30% in what is being called a partial claim. The goal is to reduce their monthly mortgage expenses to 31% of their income.  However, the principal reduction will be combined into a second, no-interest loan that won’t be due until the first loan is completed, or the borrower sells the property. Reducing the principal on the original mortgage in this way will allow homeowners to lower their monthly mortgage payments to an amount they can afford, thereby preventing foreclosures and defaults.

The program is called FHA Home Affordable Modification, brings the borrowers up-to-date on their payments: it includes all past due payments into a new second mortgage with no-interest.  In order to qualify, a borrower must already be in default on their mortgage at least one month, but not more than one year. This will hopefully prevent abuse from

• those who are irresponsible and really unable to make payments and
• from those who can make their payments but try to take advantage of the program

Any borrower wishing to utilize the program must be the owner occupant of the single-family residence, have a justifiable hardship and be able to prove that they sufficient financial resources to maintain payments on the new mortgage.

For more information on the FHA-Home Affordable Refinance Program can be found on the HUD website.