Latino Home Buyer

The Destruction of wealth of African Americans and Latinos

2008-10-13T17:43:00.000-07:00

Credit Crises, Mortgage Crises, Bank Crises, Bail out, Wipe Out...Whatever you call what is happening the hurt really has a human face. The impact on the Hispanics/Latinos is enormous.
Specially, the crises is eliminating the wealth and savings of African Americans and Latinos to greater degree as stated: "The housing and subprime-mortgage crisis stands to cost minority homeowners 40 percent more of their wealth than white homeowners in similar circumstances, an advocacy group says. Some estimates put the loss for African-American homeowners who lose homes to foreclosure at $122 billion, while Latino homeowners stand to lose up to $129 billion, according to a study by the nonprofit group United for a Fair Economy.
A national conference on subprime lending, foreclosures and race is being held today and Friday, hosted by Ohio State University's Kirwan Institute for Race and Ethnicity.
National experts on race, law, finance and real estate will examine the subprime crisis' disproportionate effects on African-Americans and Latinos, and try to develop solutions for the growing problem, said Jason Reece, a senior researcher at the Kirwan Institute."
(Thursday, October 2, 2008 3:06 AM , By Tracy Turner
THE COLUMBUS DISPATCH , http://www.columbusdispatch.com/live/content/business/stories/2008/10/02/racial_foreclose.ART_ART_10-02-08_C8_VABG18N.html?sid=101)

Bank Refuses To Help...Seller forced into foreclosure.

2008-05-09T11:29:00.000-07:00

This is a another real Customer case:
Facts: Seller bought condo in Daly City for $385,000 with 10% down in March 2006. Towards the end of 2006 several Condos in the same building foreclosure and where later sold for under $300,000. Ever since the Seller has tried to refinance to get of a 2 year fix-adjustable loan.
Each time the banks have declined her due to value going down. In Daly City (as of 5/08) there are bought 9 condos similar to hers for under $200,000.

Action: Since October 2007 I have been working with the her lenders and/or servicing company: America's Servicing Company(Fremont was the lender originally). I submitted all the paper work a short sale and on 3/17/08 I submitted a offer from a Agent representing a Buyer. Since then I have tried to contact the Lender and I was always told that it was been looked. However, the Seller called me yesterday 5/8/08: Her condo will be up for sale at the Redwood City Court House on 5/30/08.

Results: So I really think that Lenders are not motivated enough to act faster and with better intention to help distressed Sellers.

So now we have another statistic. And just this week I've have 3 other people consulting with me on what to do. I really don't think I can help them.

This business of short sales is a very stressful sale, and a lot of it comes from dealing with the Lenders.

How did I get into this mess? Should I stop paying my mortgage? Help?

2008-05-05T18:07:00.000-07:00

Hello readers. This is not easy to write. Like many of you the current credit, mortgage, housing crises has finally hit me hard! And it is hard to admit that as a real estate agent myself I cannot figure a way out.
Problem: I bought a second single-family home in Richmond, California in 8/2005. I refinanced in 4/2006 and now I cannot make the mortgage payments and I need to decide whether to continue making payments or not. I have to make this decision by May 15, 2008.
I have invested a lot of time researching what the consequences may be, and I have found out that there are a lot of contradictions in the opinion of experts.I have patiently waited to see what comes out of Congress or the Lenders but nothing so far has helped.
Background: In 8/2005 a friend and I bought a house for investment purposes in Richmond. The goal was to buy and hold and eventually sell at a profit.We did not speculate, we did not lie to get our loan, we did not over buy. We bought something that we could afford and responsibly pay for. We bought a moderate house less than $400,000. The only possible mistake was that we ended up getting a 2 year fixed loan after which it would adjust. This loan was obtained from Fremont Savings Bank.
Then my friend lost her job and could no longer help make the payments. I continued paying it on my own. Then in 4/2007 I was able to refinance. I say that I refinanced just in time, because a few weeks later the whole mortgage/credit crises hit hard. Suddenly this house loss about 40% of its value. I had 10% equity at the time of refinance, but when the value dropped I lost all equity.
Overnight it seems that houses around my house were now worth 50% of less. And signs of foreclosures, and boarded up houses starting appearing.
Still I made my payments. As a real estate agent I was still closing transactions. There were still buyers, sellers, borrowers and mortgage CREDIT. But then the buyers dried up. And those that wanted to buy could not get loans. So my income went down. As I write this I have about 6 Short Sales transactions going on but either buyers cancel or the Lenders refuse to negotiate.
Since 12/2007 I still made my payments, but I knew I was heading for trouble so I started to call my lenders, Bank of America and Washington Mutual to see if I could modify terms. They refused then and continue to refuse to negotiated. They tell me that I first have to stop paying my mortgage before they talk to me about loan modifications, short sale, etc.
I called the many counseling help lines, and still no help. Everyone tells me that as long as I pay my mortgage then the lenders have no reason to negotiate anything.
In Summary: And so my house is worth much less than I owe. There are too many houses for sale, and now I have to decide whether I stop paying my mortgage in order to get the Bank's attention. But this has consequences:
The Consequences: I have researched the California foreclosure laws, my loan contract,the new and proposed State and Federal laws and nothing seems clear.
If I let the lender foreclose on or short sale my house, what are the tax consequence? Since it is not my primary home.
Will the lenders foreclose and stop there, or will they try to go after my primary home.
If I stop making mortgage payments in order to begin the process of getting the banks' attention, I will need to ruin my credit score. And this then has a lot of other consequences.
Responsibility: I know that I am responsible to pay this mortgage. However, the decrease in value of my house wasn't of my doing. Also, the lenders don't want to extend credit even though my FICO score is (as of 3/08 it was 756) very good since they think values will still go down. I also see the Federal Government is rescuing major banks, lenders (persuading Bank of America to buy CountryWide under favorable loan rates, helping JP Morgan buy Bear Sterns, etc).
From a purely investment perspective it doesn't make sense to keep the house. In my opinion, it will be at least 10years , if ever, bythe time my house goes back up to its current loan value.
And I have to decide whether I will make the mortgage payment to Bank of America (1st) and Washington Mutual(2nd) by May 15, 2008 or begin to let this nightmare finish.

LULAC Receives $25,000 Donation From Countrywide Bank For Homebuyer Education Programs.

2008-03-26T21:11:00.000-07:00

Washington, DC - The League of United Latin American Citizens National Housing Commission (LNHC) today announced that it has received $25,000 from Countrywide Bank, FSB, the third largest federal savings bank in the U.S. and a member of the Countrywide (NYSE:CFC) family of companies. Countrywide Bank’s financial support will allow the National Housing Commission to continue to promote educational programs on home buying, foreclosure prevention, financial literacy, credit and other areas for Latinos, especially for young people and the elderly.
January 10, 2008
http://www.lulac.org/advocacy/press/2008/homebuyer.html

The Real Real Estate Crises

2008-03-14T16:36:00.000-07:00

As a real estate agent, I am suppose to sound optimistic about what is going on in the real estate industry. However, the reality is that I don't think things will get better until late 2010 or 2011. Also, I think that what is going on is more than just real estate problem. It is only the beginning. Our economy is going through structural changes.

Here are some things I think contribute to what is going on:
1. the oil consumption : we now have billions of new people who can buy cars, washers, dryers and therefore, need energy: India, China, Latin America, Africa....where having a clothes washer was a luxury it is pretty much becoming a common item, as a car, motor bike.

2. US and world real estate prices exploded. I think this is primarily due to an increase of credit (credit card, mortgages) being more easily available.

Now, I don't think it is because people are getting richer. Yes, people may getting paid more (eg. India, China, Mexico for example). I think it is because the big banks are making credit more available.
And, the forthcoming, credit crises as the mortgage crisis today.

That's globally. Locally,
In San Francisco, who really can afford to make a mortgage payment of $800,000 without a minimum of 2 salaries?
How many service jobs pay well enough to pay a $4,000 mortgage? Plus property taxes, etc.

Add a car payment of at least $400 per month.

Again, what's the problem credit. We are no longer willing to safe to buy something. We want it now using credit. I recently was talking to friend who has stopped making his mortgage payments, and bought 3 LCD TVS....He spent $7,500 on 3 othem and bought them on credit.

I asked why not just 1, or save up to buy them. His response that he wants TODAY, will enjoy them TODAY, and if he goes bankrupt tomorrow at least he enjoyed already.
wow.

como calcular su tasa de interes cuando no es fijo

2008-03-14T16:26:00.000-07:00

Hay various tipos de prestamos hipotecarios....se pueden categorizar en 2 sectores:
prestamos figos y prestamos adjustables....

Son los prestamos adjustables la razon de muchos de los problemas de cual los proprietarios no puedan pagar su casa.

Como se calcula el interes de un prestamo adjustable? Tiene que leer la Nota o hablar con "customer service" y conseguir la informacion seguiente:

1. la fecha en cual se combierte en adjustable: el premier dia, en 6 meses en 2 anos?
2. El "margin"
3. el index y el nombre de index: existen muchos indicis: labor, 12th, etc.

el nuevo interest es Interest = Index + Margin

ejemplo:
Hoy tengo la tasa de 6.9, y se adjustable april 1, 2008, el margin es 4.1, y el indice es el Labor 6 Meses

su nueva tasa (usand el indice de 2/08) seria Interest = 3.1 + 4.1= 7.2%

The real estate meltdown and life changes -a private note.

2008-03-12T20:58:00.000-07:00

Hi everyone. I want to share parts of an article I wrote recently for LatinoWebWatch on online marketing for Latinos. I was reflecting on the current state of real estate and my career as a Broker and an Online Real Estate Marketing:

I work as a real estate broker in San Francisco, but I am hoping that I can make Online Marketing my full time profession(ie. money making job). Online Marketing is my passion and my hobby but until recently I have been so busy with real estate and mortgages. I am still quite busy, however, I see the writing on the wall--the home buying and home financing industry has dramatically changed. And I think that these industry/consumer changes are economical and STRUCTURAL. You see, with the high number of foreclosures, the short sales epidemic, the credit crunch and election year politics the real estate and mortgage industry has changed. New laws are being created that may over regulate, that may eliminate hard working and willing to pay home buyers from buying, and home owners from refinancing.

Oh, I forgot to add that although I am still quite busy, a lot of my work seems more like non-profit counseling trying to help customers either to refinance, renegotiate with their lenders or just try to comfort them and help them move out.

Although I like helping people, and this is one of the reasons I got in real estate [being a member of the communities I serve] I see that it will be very hard to make a living. I think that what has helped me "survive" this long is that all throughout my real estate career I have been very proactive in real estate online marketing.

Coming from an eCommerce background before getting into real estate I knew and still believe that the Internet/eCommerce will completely change the Real Estate & Mortgage business...and it has, see move.com, zillow.com, realtor.com, ziprealty.com, trulia.com, etc.

And this is all happening real time and now.. So I hope to focus more on my passion of Real Estate Online Marketing and Latino-Hispanic Online Marketing, and I hope to make a living out of my dream.

Affordable Housing in Oakland

2007-09-08T09:29:00.000-07:00

A constant battle we have in California is that of affordable housing. In some cities, like San Francisco, Oakland, San Jose, you often end up in bitter fights depending on which side you're on...As a resident in San Francisco we usually have long bitter fights. We all agree we need affordable housing. We need it for renters and we need it for home buyers. Renting and home ownership is beyond the reach of a lot people. Oakland will be dealing with the same:

"Oakland officials are ready to wade into one of the city's thorniest housing issues: whether to require developers to include below-market-rate housing in future projects.

The council deadlocked last year on the hot-button issue before then-Mayor Jerry Brown cast a tie-breaking vote against the rule. One of the hallmarks of Brown's two-term administration was his "10K" plan to build enough units for 10,000 new residents downtown as a way of revitalizing the city.

On Tuesday, a citizen panel formed to deal with housing will recommend that affordable housing be required in some cases, although not enough to appease some housing advocates.." San Francisco Chronicle, see sfgate.com

Dumping the First Time Home Buyer at the first signs of trouble

2007-08-29T13:51:00.000-07:00

Where have all the lenders and agents gone?

Has the real estate and loan industry abandoned the Latino
First Time Home Buyer? It seems they have. It was only a few months ago that most major companies and reports where announcing their plans to serve the growing latino home buyer. But that was until this subprime mess exploded.

What about all those first time home buyers that bought with adjustable loans
with a 2 or 3 year period. A lot of these loans are adjusting now and causing
great suffering to these home owners. Many of these borrowers cannot afford the
payment increase and or can no longer refinance, or sell due to current market
conditions. So now what. I recently wrote Senator Feinstein asking her to get
the lenders to waive various onerous conditions especially the Pre Payment
Penalty. This penalty imprisons someone from refinancing due to the high cost of
this penalty. If borrowers wait until the penalty expires it may be harder
to get a loan.

I recently heard from a real estate agent at PruLatino (Prudential's Hispanic
Full Service real estate office) in northern California. He was complaining
about how Prudential has abandoned their focus on the latino home buyer due to
current subprime problems.

As Realtor Magazine states: "Reaching out to Latino customers in word
and deed. Several years ago, the California Association of Realtors
release research showing that 20 percent of California home sales involved
buyers or sellers with a Hispanic surname. Those findings motivated Ed
Krafchow, president of residential brokerage giant Prudential California/Nevada/Texas Realty, to conduct similar research on his company ... In response, Krafchow initiated a Hispanic outreach effort and this year launched a Spanglish language listings magazine, Palacio." (Realtor Magazine, August 2007)

However, it seems the magazine has not been released, and if my friend at
PruLatino is correct, it seems Prudential was "reaching out for the easy
MONEY only and not in word and deed."

So for all of us involved in the real estate business, let's not forget those
buyers and future buyers who fed us and our families while it was good.

Rent and Eviction Control when buying a property in San Francisco

2007-08-22T15:00:00.000-07:00

I attended the National Association of Real Estate Professionals (NAHREP)
luncheon today. And attorney Jeff Woo spoke about
the San Francisco laws for selling or buying a property with tenants.
San Francisco has rent and eviction control, and because over 62% of city voters
are renters, the laws will favor tenants over landlords. So as investors,
single family buyers, duplex or four plex buyers, etc. we have to know the laws in order to maximize our gains and to make smart buying decisions.

Jeff is an expert with over 20 years of experience in SF tenant law. You can
reach at 415.781.7900, and for the SF Rent Ordinance visit San
Francisco Rent Board

Letter to Senator Feinstein to remove prepayment

2007-08-22T14:19:00.001-07:00

Here is a letter I sent to Senator Feinstein's office on 8/22/07 in which I identify that a big problem right now is the PrePaymen Penalty imposed by lenders which imprison the borrower from refinancing or selling due to the potential high amount of the prepayment: Here it is:

August 22, 2007
FAX MEMO
From: John Lira, publisher of LatinoHomeBuyer.com
(415) 609-3331

To: Honorable Senator Dianne Feinstein
Washington, D.C. office:
Phone: (202) 224-3841, Fax: (202) 228-3954
RE: Mortgage - remove the prepayment penalties.

Dear Senator: As a professional Real Estate Broker in San Francisco I know that the current mortgage/housing problem is cyclical and not easy to solve. However, the destruction that it is producing in families (especially lower income families) is tremendous.
I write to you after interviewing many clients seeking help with their loan terms. Unfortunately I have had to turn many away for not finding a way out. Most will end up losing their homes due to foreclosure or through short-sale.
However, there is one thing that I do believe is hurting borrowers unjustly: the severe lender's prepayment penalty.
The prepayment penalty prevents individuals from refinancing or selling due to the amount of the prepayment: usually 6 times the monthly interest; which on average is about $18,000 to $26,000 for a $500,000 home (subprime loan rates).
So if the prepayment penalty is removed then it would help some people refinance or sell and not be forced to sell at a loss which hurts them and the lender.

Thank you for your time,
John Lira

Senator Dodd and mortgage help

2007-08-22T14:06:00.000-07:00

New number to help with mortgage problems. I was watching CNBC on 8/21/07 and heard Senator Dodd talk about what the government can do to help owners deal with the mortgage problems. He announced this number to call 1-888-995-HOPE(4673).

Here is the website for it: http://www.995hope.org/we-can-help/making-the-call/

From the website: Things you should know
Homeowner's HOPE provides free counseling - we do not do refinancing, down payment assistance or provide loans. But we can connect you with local nonprofit resources that provide different kinds of assistance.

Although we have an excellent working relationship with many of the nation's largest mortgage companies, we cannot force a mortgage company to eliminate debt, forgive payments or dictate solutions.

We are here for you 24 hours a day, seven days a week. Most importantly, we want to help. Remember, the sooner you make the courageous decision to call us, the more we can do to help you right your financial ship.

If my lender goes out of business do I still have to pay my mortgage?

2007-08-20T15:34:00.000-07:00

Yes. Even if your lender goes bankrupt or out of business you still have to pay your mortgate. You will get a notice telling you where and to whome to send your payments.

¿Si mi prestamista cierra tengo todavía que pagar mi hipoteca?

2007-08-20T15:28:00.000-07:00

Si. Aunque su banco deje de existir, usted tiene que segui pagando su hipoteca. Normalmente le llegara un carta en cual le dicen aquien y adonde enviar su pago.

Has the American Dream turned into a nightmare? ¿Se ha vuelto el Sueño Americano una pesadilla?

2007-08-20T15:23:00.000-07:00

YES. And in my opinion this has to do primarily due to:
Greed! --buyer's, seller's, agent's, bank's. How can you buy something you cannot afford and with NO money down. I still remember some clients telling me "only in the U.S. can you buy something so expensive with no money down and still get money back." And they said with an incredible but satisfying smile.
Easy Credit! The industry (builders, banks, government) made credit so easy but with one fundamental basic mistake: How can you increase home ownership so fast so much with no increase in real income?

Why Latino Home Buyer? Por Que Latino Home Buyer?

2007-08-20T15:17:00.000-07:00

Good question. Real Estate professionals are suppose to be color blind and help their clients achieve the American Dream whether they speak English, Spanish, Chinese, Russian etc. But you do need to help them in a way that they can understand. Therefore, language and culture are important to improve communication and to have a better informed buyer whose first language is not English. Also, many times you are dealing with an extended family who may not all speak English but who want to and will contribute to the buying process.

Lastly from a pure business sense: The demographics show that the biggest group of first time home buyers will be from the immigrant communities whose first language is not English. So it makes good business, relationship and sales sense to be more inclusive.

Mortgage Loan Documents In Spanish, Chinese, and other languages

2007-06-10T23:16:00.000-07:00

Assembly Bill AB512 passed and now goes to the Senate. If it passes and is signed into law it would require a Mortgage/Loan Summary page in Spanish, Chinese, Tagalog, Vietnamese or Korean. Read below for more info:

En Espanol: Es posible que una nueve ley se apruebe que requira los documentos de hipoteca/prestamo de casa en varios lenguajes incluyendo espanol.

--------------------------------------------------------------------------------

Jun 9, 2007 - Knight Ridder Tribune Business News
Author(s): Barbara E. Hernandez

--------------------------------------------------------------------------------

Jun. 9--Non-English speakers could benefit from a proposed state law that will require home loan documents to be translated into five languages after the state Assembly voted to pass the bill late Thursday.
The bill, known as AB512, would require crucial mortgage terms to be translated into Spanish, Chinese, Tagalog, Vietnamese or Korean if a business primarily negotiates in that language. The bill passed 47-29, with four Assembly members abstaining, along party lines, with most Democrats voting for the bill, Assemblyman Mark DeSaulnier, D-Concord, said. "It's a good bill," DeSaulnier said. "It will help consumer confidence about the integrity of their transaction." DeSaulnier said that negative stories about predatory lending to limited-English speakers have hurt the whole industry and the proposed law is an "appropriate and prudent" one.

(from MortgageNewsWatcho.com, 6/10/07
http://www.mortgagenewswatch.com/newsviewer.php?ppa=%3Aqsvv%5F%5BmroooopUTeb%7DGL%7Dbfem%5E%21)

Puede el banco comprar seguro de casa contra mi voluntad?

2007-05-31T17:08:00.001-07:00

Si tienes una hipoteca sobre tu casa, tienes que tener seguro contra incendios (hazard/fire insurance) por requisito de banco. Si no tienes hipoteca (la casa es 100% tuya) aun es muy recomendable que tengas segura por si se quema, etc. Si no tienes seguro el banco te manda un carta enqual te dice que si no obtienes seguro ellos van a obtener el seguro y tu lo tiendes que pagar.Si tienes seguro tienes que mandales copia de la "policy" como prueba.

The Power of the Latino Vote. Let's get something in return

2007-05-31T11:15:00.001-07:00

Through our Vote comes Political Power. Through Political Power comes the power to change

how we live, how we are treated, our economic, educational well being, and of course home ownership

and immigration.

So the 2008 Presidential campaign has started and the Latino vote will be fought for. Let's make them earn our vote,

lets make them keep their promises (which is very unlikely), and let's, therefore, get something in return for

our community as the candidates seek our vote and supports.

Let's get real just immigration reform, affordable housing, have banks better serve us, health care for all, and the list goes on.

Here are some highlights about the campaigns and Latinos, from from Cnn.com, http://www.cnn.com/2007/POLITICS/05/31/hispanics.2008.ap/index.html

Latinos are the U.S.'s largest and fastest-growing minority group
• Early voting states Florida, California and New York have large Latino populations
• President Bush captured 40 percent of the Latino vote in 2004, most ever for GOP
• As the Latino population has grown, so has the rate of voting participation

Hispanics tend to lean Democratic in national elections, but President Bush showed in 2004 that Republicans have much at stake. Bush captured about 40 percent of the Hispanic vote that year, the most ever for a GOP presidential candidate. His Democratic rival, John Kerry, won 53 percent, down from the 62 percent former Vice President Al Gore garnered in 2000.

California's Hispanic population is nearing 36 percent -- more than double the U.S. average. However, Latino historically vote in numbers well below their share of the population, in part because many are either too young to vote, unregistered or foreign citizens.

Are we making our living at the Cost of the working Poor?

2007-05-20T20:42:00.001-07:00

A new study shows that subprime loans are affecting blacks and Latinos more than other groups.
And what is sad is that a lot of these groups could have qualified for non subprime loans.As a real estate and loan agent, I think that many of us perhaps don't intentionally want to hurt our clients, but we fail to do our work and chose the easy path of getting our
client subprime loans because (1) the banks tells that we should because they are easier to get,or (2) we intentionally do it to get a greater compensation.If we really do care about of clients then we should start questioning the loan programs the banks/lenders are asking to submit.
Are we making our living at the Cost of the working Poor?
For more info see
http://money.canoe.ca/News/Sectors/BanksFinance/2007/05/19/4193328-cp.html

Short Sales & Taxes / Venta De Casa Por Menos De Lo Que Se debe al Banco

2007-05-10T11:43:00.001-07:00

Very simply: A short sale is when you sell (must sell) your house for less than what you owe the bank on your mortgage.The difference between what you owe the bank and what the bank accepts as sales price may be tax by the IRS as ordinary income, capital gains. Please see a real estate tax expert.

Usted vende su casa por un "Short Sale" cuando tiene que venderla por menos de lo que le debe al banco por la hipoteca. Usted podra tener que pagar impuestos (Federlales, Estateles) en la cantidad de lo que el banco le perdona.

Credit & Mortgages for Undocument people

2007-04-25T13:15:00.000-07:00

Americans for Legal Immigraton(http://www.alipac.us/article1676.html) DOES NOT want
Banks to offer credit cards or mortgage to undocumented U.S. residents. They are fighting banks like Bank of America, Citibank and others working with ACORN
(a housing advocate, www.acornhousing.org) to faciliate borrowers getting home loans using their Tax Payer Id. Number(ITIN).

Also Representative John T. Doolittle R-California has introduced a bill in Congress that would prohibit financial institutions from providing home mortgages to anyone who lacks a Social Security number. The bill (H.R. 480) would amend the Truth in
Lending Act to make ITIN mortgage lending illegal.

As a real estate professional this will hurt our industry especially in the current slow market conditions, it will hurt banks,
and of all will hurt consumers who need credit cards, mortgages in order to participate in modern society. Isn't this hurting all of us?

SUBJECT: Late Mortgage Payments/Pagos atrasados

2007-04-25T13:09:00.001-07:00

PREGUNTA: Hi, mi nombre es XXX. ytengo un problema, estoy apunto de regresar la casa a los bancos ya que mis mensualidades subieron demasiado. no he podido refinanciar ya ke tengo dos pagos tarde, mi credit score es 603,587 y 562, no puedo obtener full doc. porke mis ingresos son $3250.00 por mes, lo que devo al banco por la casa es el monto de $310,000.00 tengo dos montos el primero es por $248,000.00 y el segundo por $61,000.00compre la casa en el 2005 por el precio de $310,000.00 solo 6 meses atras la casa fue valuada en $350,000.00 pero mis vecinos estan vendiendo sus casas por menos dinero la ultima que se vendio fue por $310,000.00, no se si ustedes hacen refinanciamientos tambien, espero me puedan ayudar con la informacion que les he descrito, de antemano gracias.

RESPUESTA: Gracias por enviar su informacion muy completa.

De acuerda a su informacion, asumo que ya le llego una carta "NOTICE OF DEFAULT"?

Si ya tiende 2 pagos atrasados, y no ha llegado a un acuerdo con el banco, despues de el "NOTICE OF DEFAULT" viene el Foreclosure(remate, reposocion for falta de pago.)

Analisando su caso: credito score menus de 680, el total de hipoteca versus el valor de su casa, no sera facil un refinanciamento...

Soluicones posibles:

1. un prestamo privado (hard money loan) : estos préstamos son basados en la "equity" (plusvalia) su casa y el interes es mas alto que de los bancos tradicionales...Pero crea que no es opcion para usted debido a que no hay suficiente plus valia.

2. Puedo usted vender su casa ANTES DE FORECLOSURE en lo que se llame el SHORT SALE...en un Short Sale se negocia con el banco para que le autorizen vender su casa por menos de los que se debe.

3. Ultimamente, se busco aun amigo/familia que quiera comprar su casa.

Pero si la razon es que no puedo con los pagos mensuales opcion 1 es la mejo opcion entre ambas malas opciones.

WOMEN MORE LIKELY THAN MEN TO RECEIVE SUBPRIME HOME MORTGAGES

2007-03-02T20:50:00.000-08:00

For more info see : http://www.consumerfed.org/pdfs/WomenPrimeTargetsPressRelease.pdf

WOMEN MORE LIKELY THAN MEN TO RECEIVE SUBPRIME HOME MORTGAGES
Women represent nearly 40 percent of subprime borrowers, making it more difficult for women-led households to build wealth through homeownership, according to a recent study by the Consumer Federation of America (CFA). Last year, 32 percent of women borrowers received mortgages with interest rates exceeding the average prime mortgage rate of 5.87 percent compared with 24.2 percent of men. The study, which examined 4.4 million mortgage originations throughout the country where borrowers were identified by their gender, also found that more than one in 10 women received high-cost subprime loans with interest rates above 9.66 percent.

The disparity between the rate of subprime lending for men and women grows as income levels increase, according to the study. Women earning double the median income are 46.4 percent more likely to obtain a subprime mortgage than men with similar incomes. "Evidence suggests that women have slightly higher credit scores on average than men and similar credit usage patterns, yet the fact that women are more likely to receive more expensive mortgages at all income levels undercuts the lending industries calm assurances that borrowers are priced based on their creditworthiness," said Allen Fishbein, CFA's director of housing and credit policy.

The Hypocrisy of Money & Immigration

2007-02-13T11:13:00.000-08:00

WE WANT YOUR MONEY BUT GET OUT OF OUR COUNTRY:
I am in San Francisco, and the last few weeks there has been a lot talk about ICE(immigration police) rounding up undocumented people in the surrounding cities: Redwood City, Pittsburg, San Pablo, Richmond, San Francisco.

ICE it is only those who have deportation or criminal records, but the fact is there a families, children, long time residents (nondocumented) who being deported and whose families are being destroy.

The Church is silent and so are the financial institutions: Banks, Mortgage companies, etc.
And here is the hypocrisy of Money!

As a loan agent I see all the advertisement by Banks, Car Dealerships targeting the illegal person: Credit cards, mortgage loans, loans of any type with a Tax Payer Id (ie. No Social Security Number).

So the message is clear: Get out of our country if you are illegal, but we want your money. Open up bank accounts, credit cards, get home loans, refinance.

Since persception is reality, and since we are babies of the media/advertise age, these financial institution should do more to bring public awareness of how valuable this target group is for them and for all of us.

Negative Loans(also called Pick A Payment)

2007-02-02T11:09:00.001-08:00

I am getting a lot of calls from borrowers who can longer afford their pick a payment loans. These are the loans that say that your interest rate 1, 2. 3%.A lot of the borrowers are saying that they never understood them or that this type of loan was never fully explained. As a real estate agent, I get a bit frustrated when buyers claim they are "innocent." I think a lot of buyers ignore the consequences of their decisions and DREAM that the problems will go away.However, I do believe that lenders have been very ,very agressive in their marketing of the Negative Loan programs, and we as Loan Agents, have been seduced by such marketingand as good "sales people" push these products even when we know THE NUMBERS don't make sense.For example, from day 1, a Wholesaler kept pushing us, kep training us to market/sell the Negative Programs. She explained how it all made sense and even brought us their calculators to quickly see 'HOW MUCH MORE MANY YOU COULD MAKE BY ONLY PAYING THE MINIMUM PAYMENT (LESS THAN FULL INTEREST" AND SAVE THE REST INTO A SAVINGS ACCOUNT."Example of what she said. You regular payment would be 3,000 interest only, principle & interest would 3,500, but your minimum would be 1,800.So pay 1,800, and the rest put into a savings account. When one of my colleagues challenge her by saying: that this only made sense if you earned enough in savings to make sense she got very upset at my colleague. Now almost 2 years later, we see the result of a lot of people losing their homes due to not being able to pay the deferred interest.So I have to tell borrowers and agents, if it is too good to make sense then it is.And as agents we owe a duty to explain the "worst" case scenarious to our buyers.It is very sad to have to tell my prospects when they call that there is nothing I can could to help.

¿Qué es un "Blog"?

2007-01-24T12:11:00.001-08:00

¿Qué es un "Blog"? Es parecido a los foros o un tablón de anuncios/mensajes de un foro. La palabra BLOG viene de weblog. Quedó la "B" y se adirió a LOG, y quedó BLOG. Es "un sitio 'web' que contiene un diario personal en línea con reflexiones, comentarios y enlaces. El "blog" es semejante a un diario en línea. Cualquier tipo de información puede ser presentado en un blog, de historias acerca de una vacaciones de la familia al comentario exhaustivo en la política de mundo. Además, la mayoría de los blogs permiten a visitantes para anunciar las respuestas para bloguear artículos o entradas y salir la reacción para la persona que corre el sitio, conocido como un "blogger". En términos generales, un blog es una manera rápida, fácil y divertida de establecer una presencia en línea.

¿Quién puede vender bienes raíces?

2007-01-24T12:10:00.001-08:00

¿Quién puede vender bienes raíces? Sólo una persona que tiene una licencia de bienes raíces lo puede ayudar a comprar una casa.Usted puede verificar si esta persona tiene una licencia en el internet http://www.dre.ca.gov. O hablenos para confirmar.

¿Que es el Good Faith Estimate?

2007-01-24T12:07:00.001-08:00

¿Que es el Good Faith Estimate?

El "Good Faith Estimate" es un estimacion de los gastos del prestamo 'en buena fe.' Por ley esta lista de cargos se te tiene que entregar dentro 3 dias y en escrito de tu aplicacion.

new Contra Costa Ordinances. Buyers/Sellers/Agent be careful.

2007-01-21T15:42:00.001-08:00

I recently sold a house in Richmond, CA and thanks to my client I realized that Contra Costa had passed several Point of Sale ordinaces that almost caught by surprise.

What is also alarming is that a lot offices/agents who work and live in Richmond don't them these and are not providing the disclosures and inspections necessary.

here are the ordiances, as far as I can interpret them:
1. Seller has to perform a lateral sewer inspection before selling. Or buyer has to do this 60 days after close of escrow.
If the Sever Inspection shows problems the Seller has to fix the problems unless the buyer signs to assume responsibility.
The City says that they will send the new Buyer a notice if not done.

2. The Gas Valve installation is necessary. Again, unless the buyer assumes responsibility, the seller has to order and pay for this.

The cost for sewer inspection(video) runs from $175 to $250, and if problems arise the cost to fix them will be from 3,000 to 6,000.

The Gas Valve cost is $275.00

Is an affordable REALLY affordable.

2007-01-19T10:30:00.001-08:00

This is the story from the San Francisco Chronicle about a home buyer who waited many, many years to be able to afford your own home (a 450 square foot Studio Condo) in San Francisco. The unit was bought through help from the Mayor's office of housing which helps you buy a condo below market price. So to make a long story short. She leaves a rent control flat, buys this studio unit, and then the HOA start increase, the Special Assessments start coming and she can not afford the Dues of Assessments.

I note that one of the problems with the mixed income levels of the buyers. Those with more money want more ammenties therefore increaseing the HOA dues.

more infor read at http://www.sfgate.com/cgi-bin/article.cgi?f=/g/archive/2007/01/19/carollloyd.DTL

Acorn Housing can you help a loan with better home mortgage rates.

2007-01-19T10:12:00.001-08:00

Acorn has partnered with Bank of American and CitiCorp to offer home buyers discount and better home mortgage rates.

For loans using not a social security number but a tax payer id (ITIN), borrowers can work with CitiCorp. Visit www.Acornhousing.org for more informatino.They have offices in Oakland and San Jose.

Everyone is raving about

Stock Market & Real Estate Trends

2006-10-24T15:10:00.000-07:00

Well. the stock market is hitting all time highs. And real estate is going down.
During the stock market crash of 2001, the real estate market became hot -for buyers, investors, agents, etc.

The reason could be that money left the stock market and went into real estate investments. of course low interest rates helped too.
But now I feel that investors will move money out of real estate into other investments: such as stocks.

Mortgages for Undocumented home buyers

2006-06-16T10:46:00.000-07:00

Selling illegal immigrants the American dream
- Carolyn Said, Chronicle Staff Writer
Thursday, June 15, 2006
Ramiro and Marisol looked on proudly as their 3-year-old son, Alexis, took out his toolbox and pretended to fix a closet in their new San Jose home. He was imitating the flurry of work his parents had put into the one-bedroom condominium over the past two weekends, installing new linoleum and carpets from Home Depot, painting and repairing. With a shy giggle, Marisol, 27, pointed out where she plans to put the sofa and the TV in the tiny living room while Ramiro, 32, talked about being able to grill carne asada on the tree-shaded balcony. They joked about how rarely they see each other. Ramiro works six days a week in a sheet-metal factory and attends night school to get his high school diploma. Marisol goes to business classes in the mornings and works afternoons as an office assistant while Alexis attends preschool. It was a typical new-homeowner scene with one exception: Ramiro and Marisol, who asked that their last name not be used, are undocumented immigrants from Mexico. They've been in the country for four years. Marisol entered on a tourist visa. Ramiro hid in a car. Their immigration status did not prevent them from buying a home. It is legal for undocumented people to purchase property in the United States. The problem has been borrowing the money to pay for it. Ramiro and Marisol have stable jobs, but many undocumented people have spotty or nonexistent credit histories. Often, they've worked off the books. That's two big strikes against getting a mortgage. Another issue used to be an absolute deal breaker when undocumented people applied for home loans: Until recently, people had to have a Social Security number to qualify for a mortgage. Now, a handful of banks, including some major institutions, have begun offering home-mortgage loans to people who don't have Social Security accounts. Instead, borrowers can use individual taxpayer identification numbers, or ITINs, which are used to file income tax returns. These lending programs also allow borrowers to use unconventional ways to demonstrate their creditworthiness. The Internal Revenue Service issues taxpayer IDs to both resident and nonresident aliens so they can pay taxes. A significant number of the 8.6 million holders of individual taxpayer IDs are illegal immigrants, according to the Government Accounting Office. Even as a heated debate swirls around the 12 million unauthorized immigrants in the United States, they are increasingly participating in the country's financial system, from paying taxes to opening bank accounts. And, for many undocumented people, just as for many citizens, the ultimate financial goal is to be a homeowner. "For those families who have the American dream, but don't have access to documentation, the (the taxpayer ID mortgage) is a way for them to be able to buy a home, lay down roots and build wealth for their family for the future," said Janis Bowdler, housing policy analyst at the National Council of La Raza, a Hispanic civil-rights organization in Washington, D.C. Opponents of illegal immigration deplore mortgages for undocumented people. Some say the banks making taxpayer ID loans are guilty of aiding and abetting criminals. U.S. Rep. John Doolittle, a Republican from Roseville (Placer County), has introduced a bill that would ban issuing residential mortgages to illegal immigrants. "The government should not be in the business of creating incentives to encourage illegal behavior. Nor should companies be permitted to reward those individuals in clear violation of our laws," Doolittle said in a statement when he introduced the bill in October. The bill, which also would require expedited deportation of people caught entering the United States illegally, is pending in the Subcommittee on Immigration, Border Security and Claims. It benefits the economy when immigrants move from "mattress money" into mainstream financial transactions, economists say. And illegal immigrants represent a huge potential market. Undocumented Latino immigrants could take out some $44 billion in mortgage loans if they had the same access as legal residents, according to a 2004 study for the National Association of Hispanic Real Estate Professionals. "People traditionally talk about the undocumented Latino population as furtive people in the shadows who are very marginalized," said the study's author, Rob Paral, a research fellow with the American Immigration Law Foundation in Washington, D.C. "What's really changed is that a lot of people who are undocumented have fairly decent incomes. They have spending patterns and social behaviors which include an interest in buying a home and an ability to do it." Using Census data on income and age, he estimated that 216,000 currently undocumented households could buy homes -- admittedly ones at modest prices. About a quarter of those potential home buyers are in California. "This is a large, untapped population from a financial point of view," Paral said. "If it were not restrained, it could be pouring a lot more money into society." Banks have gotten that message loud and clear. U.S. banks now routinely accept both taxpayer ID numbers and a Mexican ID called matricula consular to open new accounts. Many reach out to the Latino community with Spanish marketing materials and bilingual bank tellers. The latest twist is the taxpayer ID mortgage. Pioneered by small community banks, mainly in the Midwest, the loans slowly have begun to spread. As of September 2004, one credit union and 18 banks were offering such mortgages, according to a report by independent researcher Mari Gallagher. In California, Wells Fargo and Citibank both offer taxpayer ID mortgage loans, albeit in small programs. Citibank's version of the loans is made in conjunction with ACORN Housing, a nonprofit that promotes home ownership among low-income people. ACORN does initial screening of potential borrowers and refers those who can qualify to Citibank. Mark Rodgers, a spokesman for the New York bank, said its loans do not specifically address immigration status. "We look to provide financial services across the wide spectrum of consumers in the United States," he said. "This is a program for borrowers in low- to moderate-income households, and we do, as part of that program, accept (taxpayer IDs) in addition to Social Security numbers." Marisol and Ramiro got their mortgage through the Citibank/ACORN Housing program, which offers interest rates a full percentage point below the published rate and $3,000 toward closing costs or down payment. In addition, their Realtor, Rebecca Gallardo-Serrano of Protelo Group Realty in San Jose, gave them a rebate of $2,500 to help pay their closing costs. At less than $260,000, their small condo was the lowest-cost listing in Santa Clara County. The program acknowledges the reality that many Latino immigrants do not have much traditional credit history. "In the Latino community, we don't like to have debt," said Frances Martinez Myers, chairwoman of the National Association of Hispanic Real Estate Professionals. "We transact in cash, so there's no credit history." Marisol and Ramiro, for example, "used very nonconventional credit," Gallardo-Serrano said. ACORN Housing verified that the couple had paid their bills on time for the past two years to PG&E, San Jose Water, their landlord and a health club. In addition, they showed two years of tax returns and employment history. Lez Trujillo, field director with ACORN Housing Corp. in Chicago, said the program with Citibank, which is available in about seven states, has made 804 mortgages worth $153 million since early 2005. Of those, 387 were in California, primarily Northern California. An additional 1,300 borrowers are now in the pipeline, either in contract or shopping for a house. None of the mortgages has resulted in a foreclosure. In fact, among all the borrowers, there have only been two late payments, both quickly remedied, she said. Aren't illegal immigrants worried that buying a home could make them more vulnerable to deportation? "It's a risk people are willing to take," Trujillo said. "Many of them have established credit, have had a job for many, many years, have been paying taxes. They have families, they want a stable place, privacy -- the same reasons the rest of society buys a house. The mentality is that they are here to stay and want to buy houses." Wells Fargo has offered taxpayer ID mortgages since December in a pilot program in Los Angeles and Orange counties. The bank declined to discuss the program, instead sending a short statement saying it will continue to evaluate it. The biggest barrier to such loans is that they cannot easily be sold on the secondary mortgage market. Most banks sell the mortgages they originate to bring in more money to make more loans. Instead, banks must keep taxpayer-ID mortgages in their portfolios, tying up capital. "If there was an investor, whether Freddie Mac, Fannie Mae or someone on Wall Street, who decided they would start buying (taxpayer ID mortgages), it would certainly make it a lot easier for lenders to make them," said Brad German, a spokesman for Freddie Mac, a government-sponsored entity that repackages mortgages for sale to investors. Freddie Mac is studying whether to buy taxpayer ID mortgages, German said. Mortgage Guarantee Insurance Corp., the nation's largest mortgage insurer, provides insurance on taxpayer ID loans. While Mortgage Guarantee does not release specific numbers, Katie Monfre, a spokeswoman for the Milwaukee company, said taxpayer ID loans account for less than a half-percent of its overall business. "I can tell you the loans we've had on this very young book of business have been performing well," she said. That means they've had a very low rate of delinquencies and defaults. Gallagher, who specializes in research on undocumented Mexicans and the mortgage market, said that despite the shifting political winds, she thinks taxpayer ID mortgages will grow because the market pressure of so many immigrants who want to buy homes will be so strong. "This is the match that could light the next fire in the mortgage industry," she said. That kind of talk ignites wrath among anti-immigration partisans. "It's simply wrong for foreign lawbreakers to be enabled to plant roots in this country by way of obtaining a mortgage," Roy Beck, executive director of NumbersUSA, a group that wants to curtail immigration growth, wrote in support of the Doolittle bill that would bar mortgages for undocumented aliens. Ramiro and Marisol don't see themselves as lawbreakers. They hope to become citizens. And they hope that their condo will appreciate in value so they can trade up. "After I finish school, I want to have another baby, a girl," Marisol said. "Then in three years or maybe two, we can buy a house."
E-mail Carolyn Said at csaid@sfchronicle.com.Immigrants and finances Immigrants participate less in mainstream financial institutions than native-born Americans and have a lower rate of home ownership. Immigrants in this study were a representative sample of the country, so about two thirds are legal residents and one third are undocumented. Checking Savings Own Own Household account account home stock Immigrants 63% 55% 55% 13% Native-born Americans 76% 68% 75% 27% Source: Federal Reserve Bank of Chicago Locally, information on taxpayer-ID mortgages is available from ACORN Housing, www.acornhousing.org. Oakland office: (510) 436-6532; San Jose office: (408) 297-3087

Decline in Latino home buying seen as effect of new state law. Georgia

2006-06-07T10:51:00.000-07:00

Home buying among Latinos in metro Atlanta has slowed significantly in recent months amid jitters over immigration reform, say real estate agents and lenders who cater to the Spanish-speaking community.The cooldown is an early sign that a 2-month-old Georgia law intended to reduce illegal immigration could be having an effect. There's no question that theres a panic in the Hispanic community," said Raymond Amengual, a lender with AHM Mortgage. The problem is not so much their immigration status as the new laws that make them think they might not be able to work."

Interest Rate hikes and foreclosures

2005-12-22T14:37:00.000-08:00

Becareful of the Option Payments. Opntion Payments include the Deferred Interest also known as Negative Amortization.This means the minimum payment DOES NOT COVER THE minimum interest. The difference is added to the principal. For example, if have a loan for $100,000 at 6% you have the following options to pay Option 1: Negative at (1%), monthly payment $83.33 Option 2:. Interest only monthly payment is $500.00. Option 3: 30 Years Interest & Principal $599.55;so if you have pay Option 1, then you are underpaying the by 500-83.33= 416.67.This cannot continue forever. Depending on your loan you can only do this for 12 months or until a certain amount is deferred. When that happens the Lender will force you to pay up.

Latinos fastest-growing minority in US

2005-06-13T12:59:00.000-07:00

From US Census Report as of July 1, 2004 printed in the SF Examiner:

- 1 in 7 people in United States is Latino/Hispanic

- It is estimated that there are 41.3 million Latinos in the US

And of course this has tremendous impact on the real estate market.

There are many issues that need attention for the Lation Home Buyer, including:

- Overcoming the high prices of homes. They simply have become too expensive in many urban areas. Without fancy, creative, and sometimes confusing loan programs, most home buyers and Latinos in particular cannot afford to enter the market.

- Access to capital. There has to be more loan programs that are competitive and are alternative to the "FICO" score mentally. We need more loan programs that can take Tax Payer ID Number versus Social Security numbers, alternative trade lines versus FICO Scores, to buy in groups versus a single qualifying person.

- Need for good information. The Latino Home Buyer needs "truthful" information and a team of professional that helps the LatinoHomeBuyer rather than take advantage of her/him.

---------------
JOHN LIRA,
BayDirect Realty,
Mobile: 415.609.3331,Fax. 415.824.1866
Office: 415.824.4878
http://www.BayDirect.com
3405 Cesar Chavez St. #A
San Francisco, CA 94110
(corner of Mission St)

Becareful with the hype of interest only loans

2005-06-02T12:54:00.000-07:00

As a real estate broker, I see that a lot of my buyers are getting homes with INTEREST ONLY payments. Although it is explained to them what this means, a lot of them come back months later to have me explain why their mortgage balance isn't going down and ask if they can refinance to get a lower "payment."

Well, interest only is a great investment loan vehicle if you know how to use. But it is a sure path to becoming a "mortgage nightmare" if not understood.

For a lot us, Latino or not, we want to own our home free and clear eventually. But after a great sales job by lenders, the Latino buyer accepts an interest, prepayment penalty, variable loan and never really understands it implications. On the other hand, without these loans a typical (latino) home buyer will not qualify. So it comes down to being practical and realistic in terms of homeownership.

So set up your priorities, and if the overriding goal is to own your home then often the comprise is an interest only loan in order to have the minimum mortgage payment. This is especially true in the San Francisco Bay Area. But a buyer also has to under that that the principal will not go down, and that most likely when she refinances the then current rates will be higher.

So a buyer should look at the worst case scenario: WHAT IS THE MAXIMUM INTEREST RATE THE MY LOAN CAN HAVE(the caps), and see if they can still afford the mortgage, or would be willing to consider selling options.

----------------

Latino Home Buyer

2004-12-30T20:59:00.000-08:00

Latinos are buying homes in the largest numbers ever.But there are problems with traditional loan qualifying, ID requirements, and abuse in charges.