Trying something new…This post will likely change several times before we are done today.

I have been wondering when the govt. is going to take this crisis a little more serious.  Not that they haven’t been, but I think there is so much more to work on then givining institutions all that tarp money to find out that it never reaches those that really need it.  Here is an article that briefly outlines some of the new changes that will be made tio move the procvess along!      

The U.S. Treasury on Monday set long-awaited guidance on a plan for mortgage companies to speed “short sales” of homes and other loan modification alternatives to stem a rising tide of foreclosures.

The Home Affordable Foreclosure Alternatives Program provides financial incentives and simplifies the procedures for completing short sales, a growing practice in which a lender agrees to accept the sale price of a home to pay off a mortgage even if the price falls short of the amount owed, according to an announcement on the Treasury’s website.

Guidelines address barriers that have often sidelined short sales by setting limits on the time it takes a bank to approve an offer, freeing borrowers from debt and capping claims of subordinate lenders.

The incentives, first announced in May, expand on the government’s Home Affordable Modification Program, known as HAMP, that has seen limited success in lowering payments for distressed homeowners. The Treasury earlier on Monday stepped up pressure on mortgage companies to make permanent the 650,000 trial modifications they have started.

“While HAMP program guidelines are intended to reach a broad range of at-risk borrowers, it is expected that servicers will encounter situations where they are unable to approve” or offer a modification, the Treasury said in its announcement.

Financial incentives for completing short sales or similar deed-in-lieu transactions — in which the deed is simply transferred to the lender — include a $1,000 payment to servicers, and a maximum of $1,000 to go to investors who sign off on payments to subordinate lien holders, the Treasury said. Borrowers would receive $1,500 in relocation expenses.

Short sales are favored by real estate agents and community groups over foreclosure because they can preserve the borrower’s credit rating and leave the property in better condition than when a homeowner is evicted. While primary lenders typically realize steep losses, their recovery is typically far better than under foreclosure.

But short sales have been frustrating for borrowers and real estate agents, often hung up by negotiations with multiple lien holders and mortgage insurance companies. Real estate agents have complained that sales fall through as lenders bicker over the sales price, what they should receive from the proceeds, and whether the borrower will be held accountable for the debt in the future.

Among requirements, mortgage servicers have 10 days to approve or disapprove a request for short sale, and when done the transaction must fully release the borrower from the debt.

It also prohibits mortgage servicing companies from reducing real estate commissions on the sale, a practice that has dissuaded many agents from taking short sale listings.

In one of the most contentious issues gumming up negotiations between lenders, the guidance caps the aggregate proceeds to subordinate lien holders at $3,000.

Second lien holders in recent months have begun demanding more money from the first lender, seller, buyer or agent in exchange for releasing their claim, agents have said. Because primary lenders would face larger losses in a foreclosure, some subordinate lenders have felt empowered, the agents said.

The largest second-lien holders are Bank of America Corp, Wells Fargo & Co, JPMorgan Chase & Co and Citigroup Inc.

Second lien holders may proceed with a short sale outside of the Treasury program, if they felt the cap was too low, a Treasury official said in October.

“If there was a short sale program that didn’t recognize the second lien holder position, it could have pretty damaging consequences for the industry,” Sanjiv Das, chief executive officer of CitiMortgage, said in an interview last week.

I must say I have really enjoyed the opportunity to come to jamaica at the Ritz Carlton Hotel with the NAREB organization and speak to their elite group of real estate professionals.  It has been wonderful to see all my old friends in the industry.  My speaking engagement was very well received and I look forward to doing more in the future. 

 NAREB really knows how to put on a wonderful convention.  For those of you that are working those tough urban markets, small business owner, or just having a tough time in the real estate and finance industry.  You need to check out NAREB, they really open up the doors for opportunity for real estate professionals to connect and engage to make a brighter future.   They also give RE professionals the opportunity to get up and close to key folks, decision makers and true shot callers in the industry.  Keep up the great work NAREB!   Well I have to go back to the pool.  I’m trying to work on my tan. 

This is a warning to everyone to be careful

when showing properties.  Know who you are

showing the property to before showing

Realtor Found Murdered in Foreclosed Home

Ricardo Contreras, 45. (KTLA / July 19, 2009)

 

WESTCHESTER — Authorities say a man who was found murdered inside a Westchester home being shown to a prospective buyer was not robbed.

Family members and neighbors have identified the victim as 45-year-old Ricardo Contreras.

Contreras, also a real estate agent, had been missing since Tuesday evening when he didn’t come home after work, his family members said. They had put out fliers in an effort to find the father of five.

Contreras’ body was discovered around 7 p.m. Saturday inside a foreclosed home located at 8917 Kittyhawk Avenue.

Police at the scene said a real estate agent was preparing to show the three-bedroom, two-bath house when she discovered the key was missing from the lockbox.

The agent then went with the client to the backyard and noticed a window had been broken.

Upon further investigation, they found the body of a man lying motionless on the living room floor, officials said.

The real estate agent called police, who had to wear masks inside the home because of the odor.

Paramedics pronounced the victim dead at the scene.

The coroner removed the body from the home around 10:30 p.m. An autopsy was being performed to determine the cause of death.

Police detectives called the death a homicide, and said a white car on the street may have belonged to the victim. Detectives towed the car to a police station for further investigation.

Family members tell KTLA that Contreras was stabbed multiple times.

It wasn’t immediately clear if Contreras was killed inside the house.

Investigators, searching for a motive in the murder, say Contreras was not robbed and still had his wallet, wedding ring and other personal belongings, including a lap top, in his possession.

The 1900-square foot house is owned by the bank and was being listed by the Modern Realty Co. for more than a half-million dollars.