Rejected HAMP Borrowers File Lawsuits
Borrowers who were turned down by the government’s Home Affordable Modification Program (HAMP) are suing lenders in a variety of lawsuits, and several of them are seeking class action status.Most of the lawsuits allege that the trial periods were contracts and lenders like Bank of America, JPMorgan Chase, and Wells Fargo broke the contracts when they refused permanent status to borrowers who made the trial payments on time and provided proper documentation.

Lenders are asking the courts to dismiss most of the cases, arguing that the trials aren™t contracts and they have discretion in deciding whether to approve modifications.

Nearly 620,000 trial modifications since spring 2009 have been canceled, according to an Aug. 20 Treasury report. Borrowers who are denied find themselves in worse positions because banks require them to immediately pay the difference between what they paid toward their mortgages during the trial period and what they would have owed without the trial reduction.

Source: USA Today, Stephanie Armour (09/10/2010)

This just in…

Kevin Stone, Government & Community Affairs Director for the Monterey County Association of REALTORS announced this morning that the California State Water Resources Control Board Cease and Desist Order STAY, which has been in place since November 2009 has been lifted.

Information is still coming in and “it is uncertain (at this point) as to whether or not the Monterey Peninsula Water Management District (MPWMD) will move directly into rationing, however – a moratorium on new connections or intensification of use (within the Cal-Am service territory) is now in effect,” says Stone in an email to local REALTORS. More information is coming, so stay tuned!

Potential buyers of short-sale homes might consider waiting until April 5th before making a formal offer.

That™s the date the federal government will begin offering lenders financial incentives to hasten the process. Under the new rules, banks will seek a BPO before the property is listed for sale and let the sellers know a minimum number they are willing to accept. If the sellers bring a buyer with a good offer, the lender must accept it within 10 days.

Not all sellers are eligible for the program, dubbed the Home Affordable Foreclosure Alternatives (HAFA), but enough are that it is probably worth waiting.

Source: The Wall Street Journal, June Fletcher (03/19/2010)

Wishing you all many blessings this Thanksgiving and throughout the year. We are so fortunate to be blessed with health, wealth and happiness. This is a time to share, with family and friends, and those in our community.

To share with those who are hungry visit  the Food Bank for Monterey County

More good news for consumers and the housing market recovery.

Following the Senate™s favorable ealier this month, the U.S. House of Representatives voted 403 to 12 to extend the home buyertax credit, expanding the parameters to include existing homeowners and not just first-time buyers. We expect President Obama to sign the legislation in short order.

As it now stands, the federal tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline.

First-time home buyers will continue to be eligible for a tax credit of up to $8,000, while existing homeowners will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years.

The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.

Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

Nationwide, more than 1.4 million first-time home buyers were given the opportunity to become homeowners as a result of the Federal Tax Credit for First-time Home Buyers.   That number is expected to increase dramatically in the months ahead with this new legislation in place. Call me to find out  how  I can help  get you take advantage of the  Monterey County real estate market.
 
Susan Spiegel, Realtor
831-915-5585
susan@susanspiegel.com  

Please let me know if you or anyone you know has real estate needs. I can help with any location.
 

Welcome to Susan Spiegel’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Carmel.