Foreclosures in California Will Be Reduced!

By
Real Estate Broker/Owner with Riede Real Estate, Lic. 01310792

Happy ThanksgivingGood News for Real Estate is here! Finally there is hope for Homeowners with adjustable real estate loans...keep reading!

Happy Thanksgiving! There is some good news for those facing Foreclosure in Real Estate for the Sacramento area and all over California for that matter.

This week, Governor Schwarzenegger met with 4 of the largest loan servicers who are servicing subprime loans. The Governor asked these loan servicers to voluntarily agree to NOT adjust mortgage rates on their subprime loans which constitute 25% of their real estate loans.  California rates twice the National Average in Forecosures. This is having quite an impact on our economy here in California.

The four lending loan servicers that Gov. Schwarzenegger met with are:

  1. Countrywide Financial Corp.
  2. GMAC Mortgage
  3. Litton Loan Servicing
  4. Home Eq Servicing 

Sad to say that this does not come in time for many who have lost their homes. Governor Schwarzenegger had this to said, " with this type of cooperation from loan servicers, we can save tens of thousands of people from being added to the foreclosure lists."

In March 2008, it was predicted that the peak of Foreclousre was to hit California due to loans adjusting to a much higher rate,  but now with Gov. Schwarnenegger stepping in, this may save many of those homeowners who have a subprime loan that will be adjusting.  There have been 24,000 foreclosures in California alone, so far with Stockton being #1 in Foreclosures with 1 out of 31 homes foreclosed upon and Sacramento second, with 1 out of every 48 homes foreclosed.

There are a half million Californians who have subprime loans that will jump to higher interest rates. Our Governor, Gov. Schwarnenegger is the first to step up to the plate to protect the homeowners of California.

It's important not to simply wait and do nothing. The Governor has asked, " borrowers to do their part...meet the lenders half way." Homeowners facing foreclosure MUST contact the bank at the very 1st sign of a problem.  This is a horrendous time for a homeowner, but you need to put aside the emotions and solve the problem. Don't just walk away, step up, call the place that you pay your loan each month and talk to them.  There is help but you need to be pro-active.

Help for homeowners losing their houses has been accomplished by the Federal Deposit Insurance Corporation Chair Sheila Blair where she encouraged the lenders to keep subprime mortgage borrowers at their initial interest rate if their are living in their home, making timely payments but can't afford the loan to "reset" to the higher interest rate.

Many have said that the homeowners in foreclosure should take responsibility and not receive any bail-out help Federally. It's time that everyone realize that this doesn't just effect those homeowners losing their homes, it effects ALL of US.  New laws need to be enacted where this type of lending practice is not to be readily used for the masses. More regulation and protection for the home buyer needs to be established in the lending field.

I for one, am pleased that something is FINALLY being done to reverse this horror in real estate and with the American Dream of home ownership. This is truly a thankful, Thanksgiving...just wish it had come sooner for so many other homeowners.

What are your thoughts on Foreclosure and the effects of foreclosure on the homeowner as well as the country as a whole?

Here are some helpful websites for those homeowners in CA having difficulty or having questions about their mortgages:

CA Consumer Home Mortgage Information

Homeowners Facing Foreclosure

Look for ads on television and with your local city government offices for more help with Stopping Foreclosure and stopping your adjustable rate from going up. The Governor will be running ads soon...there is hope but you MUST act.

 Happy Thanksgiving!

 

 

 

Other Related Articles:

Sacramento Real Estate Writes Letter to All Banks

Sacramento Real Estate, Prepare for the Eye of the Storm

Short Sale and Foreclosure Real Estate Tax News

Property Taxes-Something for Homeowners to Consider

Townhome Auction Left Buyers Scratching Their Heads

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The Blood Continues to Run

Sacramento Real Estate Gets Hit AGAIN by Auction Company

Gena Riede of Sacramento Real Estate Voice on Channel 13 News

Sacramento Foreclosure Auction Looking for Suckers!

Sacramento Short Sales and Foreclosures

Are Short Sales and Foreclosures A Good Deal?Fraud in Real EstateWhat Does Short Sale Mean?

Fraud in Real Estate

Sacramento Real Estate Fraud-Homeowners Read This

Foreclosures, Buy or Don't Buy?

Do You Understand Foreclosure?

2007 Where Knowledge is Power in Real Estate

Want to Be An Investor?What Sellers Need to Know About Receiving Offers  

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Rainmaker
210,989
Lucky Lang
Mel Foster Co. - Davenport, IA
SRES, Davenport, Iowa Real Estate

Gena,

Finally some good news that bears repeating!  Where's the national news media?

Lucky :)

Nov 24, 2007 06:45 PM #66
Rainer
1,516
Brenda White
The Realty Association - Mount Juliet, TN

Hi Gena,

I've read most of the comments that have come in. I agree, that most of the buyers should have been more careful about the type of loan they got, but, now with what the State of California is trying to do, hopefully will be of some assistance to the homeowners.

I was wondering, I live in Tennessee and we have a lot of foreclosures coming about as well because of the same horribly structured loans and I was wondering where a good starting point would be to maybe assist some of these homeowners here. I mean, if it can be done in California, maybe it can be done here as well. Got any pointers.

On another point, I just finished a short sale with Countrywide. I have been selling real estate for over 20 years and it was absolutely the worst experience I have ever had. The communication with Countrywide, to say the least, was all most impossible. It took us over 2 months to get it closed out. Don't  misunderstand me, I've done short sales before, but the one with Countrywide, organization and customer relations was not their motto.

I want to commend you on sharing the information that will hopefully help some of the homeowners with their loan issues.

Again, if you have any pointers that might assist any of the homeowners here, I am all ears.

Also, if you have anyone wanting to come to the Nashville, Tennessee area, let me know.

Kindest Regards,

Brenda White, Broker

The Realty Association

Nashville, Tenn.

http://www.brendajwhite.com

Nov 24, 2007 07:30 PM #67
Rainmaker
246,193
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699

Lucky, there may be a hiccup to this but then we need to wait and see since many times things in the BEE are reported incorrectly. I took my information directly from the State website. If the loan servicers do not come aboard with the Governor's plan, I'm sure it won't be the last we hear from him. He as a lot a stake. So, it's a wait and see right now.

Brenda, I wish I had some wonderful pointers for you. Other than laws to protect the home buyer so we don't endure this again and making it more difficult to get a real estate license and laws in place that lenders must comply with as well as going after those that committed fraud and prosecuting...I don't have much else to offer. I just know that hiding our heads in the sand will not help to resolve this now or in the future. Much work needs to be done.

The biggest advice that I could possibly give is to instruct those that may be readjusting to contact their lender before they miss any payments and try to work out a plan for payment that is affordable. Some will listen and others have deaf ears until they own way too many properties and home owners have lost their homes in droves.

Hopefully, it wont' devastate your state like it has here.

Nov 24, 2007 07:37 PM #68
Rainmaker
342,103
Sandi Bauman
Chico Homes Real Estate - Chico, CA
Chico CA Realtor
Gena-  this was a very informative, easy to read post-  thank you for sharing! It will certainly be interesting to see how it all plays out...
Nov 24, 2007 08:40 PM #69
Rainmaker
246,193
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699
Sandi, yes it will. I don't have the answers and I don't begin to assume I do but I'm not going to bash those that try nor assume that it is ONLY the home buyers fault. So, we'll take a wait and see...
Nov 24, 2007 09:04 PM #70
Rainmaker
277,296
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Gena, whether it is NEWS or PR by Arnold doesn't really matter. The only beneficiary of holding back on resetting would be the lenders. The interest will still accrue. If they can't re-fi out of their mess, these homeowners will probably still lose their homes.

What we (Realtors) need to do is convince buyers that this is a good time to buy. Maybe we can "create" a market bottom and start to climb up the other side. Then and only then will everybody win.

A rising tide lifts all boats.

Bill Roberts

Nov 24, 2007 10:52 PM #71
Rainer
1,970
Ilona Rivera
National Realty Group - Riverside, CA
Professional Realtor

Bill- I agree with you, we should let buyers know this is a good time to buy. Some people say that they want to wait until the market hits bottom, the only issue with that is when do you know bottom has hit?The only way you know , is when it goes back up. So tell the people, by that time the market will be climbing again and they could have saved money. So the right time is now.

Nov 24, 2007 11:32 PM #72
Anonymous
Annon

COME On people!!!!

Whats up with the last 2 comments..  Are you people so highly uneducated..  I can't believe you had a whole discussion about how we got into this mess only to leave with a shinning example of how we got into this mess.. Bill and Ilona.. I beg you .. Please put in the same 7 years to get your MBA in Finance that I did and then become a Realtor.  For the LOVE of "GOD..  Stop  the insanity..  I have to tell you.. Mark has a very valid point and "idiot" pretty much describe it.. Instead of fighting it accept it and try to become a better person.   How do you argue with Goldman Sachs...   Please spend more time educating yourself on the new "financial" Real Estate market and really make yourself useful this time around..

http://www.irvinehousingblog.com/wp-content/uploads/2007/10/california-valuations.pdf

 

Nov 25, 2007 01:41 AM #73
Rainer
1,970
Ilona Rivera
National Realty Group - Riverside, CA
Professional Realtor

Well Annon,

You really have no clue what education anyone has. So do not assume. You know what that makes! If you are calling people idiots on the tail of someone else's comment then I really do not see a benefit to your MBA if that's all you've got. Of course the report is pretty accurate based on loans already in place. Numbers do not lie and when they adjust is also known. I do not need am MBA for that.You and I both know that the Mortgage industry took advantage of the housing market and the people.So where was God in all that, where was your wisdom then? So what do you do besides want to put peoples knowledge or lack of knowledge down?

Nov 25, 2007 04:24 PM #74
Anonymous
Mark
Saturday, September 1, 2007

Schwarzenegger gives big pay raises to key advisers

Chief of staff receives $32,000 raise, making her the highest paid among governor's inner circle.

SACRAMENTO - Gov. Arnold Schwarzenegger on Friday handed out hefty pay raises to 11 of his closest advisers, including a $32,000 boost to Chief of Staff Susan Kennedy.

Kennedy remains the highest paid member of the governor's inner circle, although some of his cabinet secretaries make more. With the latest raise, Kennedy's taxpayer-funded salary will be $175,000 a year.

The other 10, including Deputy Chief of Staff Adam Mendelsohn and Daniel Zingale, chief of staff to first lady Maria Shriver, will see their salaries increase 11 percent to $147,900.

The pay raises come a week after Schwarzenegger signed a $145.5 billion state budget for the current fiscal year - temporarily balancing it by cutting $703 million from mental health programs for the homeless, state parks and medical services for the poor.

California also faces a projected $5 billion deficit for next fiscal year and falling tax revenue, caused in part by the depressed housing market.

Schwarzenegger spokesman Aaron McLear said the higher compensation is critical if the governor's office is to attract and retain the best and brightest.

McLear stressed that the raises are not an effort to compete with private-sector wages but rather a way to give important state workers comparable pay to what some cities and counties in the state can offer.

"It's tough to compare California to other states; it's expensive," McLear said. "These raises are going to valuable employees to the governor who work all hours of the day, nights and weekends, and do a great service to the state of California."

The pay boosts, however, give Schwarzenegger one of the highest-paid political entourages in the country. Kennedy's 23 percent raise gives her a salary higher than President Bush's chief of staff or any other White House adviser.

In addition to Mendelsohn and Zingale, others receiving the raises are Schwarzenegger's deputy chiefs of staff, Will Fox, Ross LaJeunesse, Chris Kahn, Dan Dunmoyer and Cynthia Bryant, Legal Affairs Secretary Andrea Hoch, Appointments Secretary John Cruz and Judicial Appointments Secretary Sharon Majors-Lewis.

Under the spending plan Schwarzenegger signed last week, his office will spend nearly $19.7 million during the 2007-08 fiscal year. Most of that - $16.3 million - will go for salaries and benefits.

For comparison, Davis spent $3.5 million on governor's office salaries and benefits the last year he was in office in 2003.

Nov 25, 2007 07:28 PM #75
Rainmaker
246,193
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699

Bill, it's not hard to convince buyers that this is a great time to buy with home prices down and interest rates in check. In fact, I just put some new home buyers in with 8% below asking price (appraisal came in higher), 3% for buyer's non-recurring/recurring costs and money for replacing carpets. It is definitely a time when the buyer is in the driver's seat.

I am not an economist, nor has the government hired my expertise to figure out this whole mess...my guess is there is more than one good way to get through this with as little blood shed as possible and I certainly hope that we see one of those ways enacted.

Sorry for the delay in getting back to your comment...had some other details to take care of. I appreciate your comment and point of view.

Nov 25, 2007 07:57 PM #76
Rainmaker
246,193
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699

Ilona, right on...it is the very best of times for the buyer as long as they are not tangled up in a short sale..banks are just not responding here like they should. But, the sellers are eager and waiting to negotiate.

Annon, Interesting site...haden't been there before and only quickly scanned but 35-40% seems a bit outrageous. Of course if one was to look at that percentage over the past say 3 years it would make sense but from today's date...I'm not sure I buy into that. I can definitely see another 8% over the next year. No, I don't have an MBA in Finance but my educated opinion is that it won't go down that far. Could be wrong and certainly have been wrong in my life, a time or two.

One of the things that goes along with it being a great time for a buyer are several different caveats as I'm sure you know...interest rates and the eagerness and negotiability of the sellers.  If prices go down even more than 8% but interest rates go up and sellers not being cooperative, then it isn't quite worth it. As I stated above, I recently helped a buyer pay 8% less than the asking price (which really wasn't off much and it actually appraised for what the seller was asking), also got the buyer 3% for non-recurring/recurring closing costs and points buy-down along with new carpet allowance...so that why these buyers and most buyers buying right now that have someone negotiating for them, feel that this is a GREAT time to buy.

Thanks for the website and I will indeed take time to read what others have to say about finance.

 

Nov 25, 2007 08:13 PM #77
Rainmaker
246,193
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699

Ilona, it seems that this topic has certainly touched on some nerves with everyone. I think that we all feel very passionate about this subject and many times what I have learned over the years is that the fear of it all is what we really end up hearing. We can't change how others perceive things nor how they react in a stressful or fearful position. I know that you care about your clients and do the best for them and in the end that 's really all that counts. And I know that you and Bill aren't idiots...and so should Annon...just got a bit carried away with his passion, I think.

Mark, well it sounds like the Governor is trying to keep key staff in their positions. Is he still not taking a salary himself?

 

BOY, DO I EVER WISH I HAD A CRYSTAL BALL!!!!

Nov 25, 2007 08:26 PM #78
Rainer
1,970
Ilona Rivera
National Realty Group - Riverside, CA
Professional Realtor
GENA-I appreciate you Positive comments. I understand we are all here to make comments or express our opinions. I also feel that it would be a lot kinder if people did not attack people personally.  I generally don't try to do that , however if someone opens the door I will defend what I believe. I think it's ok to generalize but not individualize. There should be some type of etiquette when people write/speak to each other.
Nov 25, 2007 09:40 PM #79
Rainmaker
246,193
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699

Ilona, I agree with you and don't fault you for standing up for yourself. It's never in good taste for anyone to name call.  I hope that our friend has picked up on that ... we all have to learn and each day is a new day and a new subject to learn about.

So, let me just take this opportunity to apologize for him.

Nov 26, 2007 02:54 PM #80
Anonymous
Anonymous

If you keep this up I will start to call you MOM, (Smile....)

Have a great rest of the day!!!!!!!!!!!

Nov 26, 2007 03:58 PM #81
Anonymous
Anonymous
The last comment was meant for Gena. Thanks.
Nov 26, 2007 03:59 PM #82
Anonymous
Ilona Rivera Professional Realtor
I am not certain why, but the last two comments did not show who left the comments. So here it is.
Nov 26, 2007 04:03 PM #83
Rainmaker
246,193
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699
Ilona, I figured it was you. My site has some problems including points which is somewhat maddening. You can call me MOM, anytime.
Nov 26, 2007 04:33 PM #84
Rainmaker
210,989
Lucky Lang
Mel Foster Co. - Davenport, IA
SRES, Davenport, Iowa Real Estate

Gena,

"+"

Lucky :)

Nov 29, 2007 11:22 AM #85
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Rainmaker
246,193

Gena Riede

Real Estate Broker - Sacramento CA Real Estate (916) 417-2699
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