Redfin is First to Offer Foreclosure Hidden Sales Data

Redfin hits another lower my costs concept. It is now offering free foreclosure data. The company that is a pioneer in challenging the industry earnings structure by offering very low cost agent representation is moving into new fields and challenging the foreclosure sector.

They are adding bank owned foreclosed properties and providing owner information. Normally, the listing is made available at no cost, but to get the owner name and contact info is not free. According to the recent press release "Many foreclosed properties can be bought directly from the bank prior to their being listed by a broker in the MLS, but buyers can only see them on most websites if and when the bank hires a broker. Redfin users can see the foreclosed properties as soon as the bank takes possession, usually after an auction fails to attract a buyer willing to pay the amount owed on the mortgage."

What Redfin is doing that is unique is showing the bank-owned (also known as Real Estate Owned or REO) foreclosure properties that are actually for sale, including their full address and bank contact details.

Its hard to argue with free anything...but at some point dont we begin to threaten our own livelihood? Will the internet co-opt all the middle man jobs since it can do this more efficiently. Do we want to live in the most efficient world we can make....I think not

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Howard bell

www.yourpropertypath.com
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New lender Rules Harm Condo's

The rules for lenders that seek Fannie Mae money have just been changed and much to the detriment of condo owners. Freddie Mac has just issued similar restrictive lending practices regarding loans to new buyers of condos.

Loan officers will now be responsible for the due diligence required before these two quasi-public agencies will get on board a new loan for a condo.

Some of The New Fannie Mae Guidelines

Condo's have legal documentation that are the guidelines for how owners interact with the community and with the HOA. They also determine what the HOA can and cannot do. How it manages the condominium. These CCR's can be in the hundreds of pages.

Lenders Must Warranty the Following:

1. The HOA operating budget - how much is spent and accounted for in the operation of all common areas.
2. The adequacy of the operating budget. Does the HOA have enough funding to adequately maintain the property. How much of the HOA budget is allocated for maintenance and upkeep? What percentage of the budget is set aside for major building issues?
3. How many late pays are there?
4. How much of the property is allocated for commercial use

These guidelines will place labor and time constraints on the lender that will cause them to move away from these kind of loans. Additionally, it puts the lender in a position of Warranteeing the financial s and that will cause many to simply not lend to condo buyers or find it cost effective to consider condo refi's.

I understand that the condo market has been risky for lenders, especially in Nevada, California and Florida but this this is another nail in the coffin of a market segment that is being hard hit.

Thanks for Reading
Howard bell
www.yourpropertypath.com
A real estate web site with more than 450 articles, for owners and managers of property focused primarily on property management

Your Property PathSF
Trade talk for owners and managers of San Francisco real estate

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Did Your Lender just Sell Your Mortgage

What You Need to Know

There is an important article by Bennie Kass for the Washington Post on Saturday regarding mortgage scams and the mortgage paper mess that followed the boom to bust of sub primes.

Many mortgages are made and then sold to another lender for a variety of reasons. What happened to one borrower when they took out a mortgage. Within a few weeks the borrower was receiving requests for payments from the original lender and the new owner of the mortgage - two monthly payment letters. Well...what do you do? You certainly want to pay only the rightful owner of the mortgage and you want to make a timely payment so that your credit remains in tact.

The Scam

Some disreputable types are getting the names and address of new owners and sending letters requesting payments now be sent to them as the new owners of the mortgage debt. A few payments later and they move on.

The rules of Assignment to a new Lender

1. In any Federally regulated lender, full disclosure of the lenders policy on assignment of a loan.
2. Both the original lender and the new owner of your mortgage must fully disclose names addresses and phone numbers so that you can check the validity of the transfer.
3. The disclosure statement will state that the terms of the original mortgage cannot be changed. Your original loan is all you are responsible for, dont let anyone tell you otherwise.
4. Grace period: The law requires a 60 day grace period during the transfer of a loan if your payment was sent to the wrong borrower. There cannot be a late charge nor a report to the credit agency regarding a late pay.
5. Complaints: You can send a letter of inquiry or a complaint and the original lender must respond within 20 days and correct problems within 60 business days from the date of the request.

Normally, both the original lender will send you a "goodbye" letter and the new lender will send letters to the effect of the transfer of your loan.

Thanks for Reading
Howard bell

www.yourpropertypath.com
A real estate web site with more than 450 articles, for owners and managers of property focused primarily on property management

Your Property PathSF
Trade talk for owners and managers of San Francisco real estate

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Mortgage Rates As Of April 3rd

Long Term Mortgages Drift Up While Short Term Rates Decline

30-year Fixed Rate Mortgage: Averaged 5.88 percent, up from last week when it averaged 5.85 percent. Last year at this time, the 30-year FRM averaged 6.17 percent.

15-year Fixed Rate Mortgage: Averaged 5.42 percent, up from last week when it averaged 5.34 percent. A year ago at this time, the 15-year FRM averaged 5.87 percent.

Five-year Treasury-indexed ARM's: Averaged 5.59 percent this week, down from last week when it averaged 5.67 percent. A year ago, the 5-year ARM averaged 5.92 percent.

Thanks for Reading
Howard Bell

www.yourpropertypath.com
A real estate web site with more than 450 articles, for owners and managers of property focused primarily on property management

Your Property PathSF
Trade talk for owners and managers of San Francisco real estate

Federal Govt Becomes the lender of last Resort

As of Monday, the 12 regional banks will be allowed to increase their mortgage security commitment by 100 billion dollars. Now this may be only 20% of the problem, but it will allow a great deal of liquidity and confidence to return to the markets.

The home-loan banks could not hold mortgage securities more than three times their capital, until Monday. Effective immediately, the regulator is raising that to six times capital for the next two years. This could allow the agencies to increase their ability to buy and own mortgage backed securities to around $150 billion. This will bring significant new money to the secondary market with the kind of oversight that was lacking before this mess.

This is very helpful for markets, allowing Federal agencies more leeway to buy the mortgage backed securities that no on has wanted to take a chance on. The result is banks that have been unable to resell loans will now be able to and that means they will have a little more cash on hand. Now, the banks do not have to loan money but the hope is that they will finance good deals of all kinds and keep the ball rolling.

I wonder how much it will impact home owners in trouble.

Thanks for Reading
Howard bell
www.yourpropertypath.com
A 450 article driven real estate web site focused primarily on property management
Your Property PathSF
A blog focused primarily on trade talk for San Francisco property owners and managers.