NEW BILL--GIVES HOMEOWNERS TOOLS TO AVOID FORECLOSURE!

Lifeline for sinking Homeowners

 

Governor Arnold Schwarzenegger has signed Senate Bill 1137, which was passed by California legislators in late June. The bill seeks to provide new pro­cedures for lenders seeking foreclosure actions and was endorsed by consumer groups.

 

The new law was passed as an “urgency measure,” so most of the provi­sion are effective immediately and continue until January 1, 2013. The legislation has three main sections, which affect borrowers who took mortgage loans from January 1, 2003 through December 31, 2007:

 

· The new law requires a mortgagee, trustee, beneficiary or authorized agent to assess the borrower’s finan­cial situation and explore options for the borrower to avoid foreclosure. The lender must advise the borrower that he or she has the right to request a subsequent meeting within 14 days. A Notice of Default may not be filed until the lender has contacted the borrower or satisfied due diligence requirements to do so, and the NOD must include a specified declaration from the lender detailing either its contact with the borrower or that the borrower has surrendered the prop­erty. The law authorizes borrowers to designate a HUD-certified counseling agency, attorney or other advisor to meet with the mortgagee, beneficiary or authorized agent on the borrower’s be­half.

 

· Fines of up to $1,000 per day may be levied upon owners of foreclosed prop­erties who fail to properly maintain them. A governmental entity seeking to impose fines and penalties must give notice of the claimed violation and an opportunity to correct the violation at least 14 days prior to imposing penal­ties. The law also allows a hearing for those contesting any governmental im­position of fines and penalties.

 

· The law amends current regulations to provide that a 60-day notice to be given to tenants of buildings facing foreclo­sure before the tenant can be removed from a rental housing unit (existing law provided a 30-day notice). A 60-day im­plementation period is in effect on this provision. 

 

“Foreclosures are afflicting thousands of Californians and their communities,” Perata said. “SB 1137 gives homeowners more advanced warning a foreclosure may be coming and provides the tools they need to help avoid it.”.

 

Source: www.sen.ca.gov

 

 

 

Hi everyone, here are updated sales data for Alameda and Contra Costa:

Signs of Life in Real Estate

Very interesting article…Enjoy!

Signs of Life in Real Estate

The “free fall” phase of the California housing market bust could end soon, as bargain hunters begin buying homes in parts of the state hardest hit by foreclo­sures, according to a recent economic re­port. The quarterly UCLA Anderson Forecast said foreclosure rates will remain a signifi­cant problem in the state at least through the end of 2008 and into 2009, economist Ryan Ratcliff wrote in one of the sections of the overall economic forecast. But “we may be transitioning from the free fall” of wide­spread foreclosures that drive down home values and prompt more foreclosures. Ratcliff said the fact that home sales in some Bay Area and Southern California counties have increased from year-ago lev­els just recently is “an encouraging first sign of a market starting to find its new equilibrium.”

In the Bay Area, “you see it in Contra Costa and Solano counties. Those are the places where you’ve seen year-over-year increases in sales,” he said in a recent in­terview.Steep price declines in those areas plagued by the most foreclosures, fairly low mortgage interest rates and improving mortgage-market conditions are luring buy­ers back to the market, according toRatcliff. But in his report, titled ”The Three Phases of California’s Real Estate Bust,” he also warned that a glut of foreclosed, bank-owned properties in many areas means that “a ‘normal’ housing market is still a long way off.”

The first phase of the bust occurred when home sales began to fall in 2005 and new home builders began to cut prices and offer incentives, Ratcliff said. The second phase happened with the flood of foreclosures in 2007.. The third phase will take place when “prices are still weak but sales volumes start picking up.” Ratcliff said he thinks of today’s market as Phase 2.5, calling it a bit too early to cele­brate a recovery. Foreclosures caused by re­setting adjustable-rate mortgages may have peaked, he said, so foreclosure rates may begin to decline later this year or early in 2009.

The quarterly California economic forecast predicts the state will continue to add jobs in 2008, but just barely. Economist Jerry Nickelsburg of the Anderson Forecast said total state employment will probably increase by just 0.2 percent this year, with growth in the services sector making up for continued job losses in residential construction and fi­nancial services. The mortgage finance indus­try in particular, which is centered in Califor­nia, will suffer a permanent loss of jobs,” he wrote.

Must as its March report indicated, the forecast predicted a continued weak econ­omy. Housing market weaknesses will be tempered by strength in exports and in agri­culture. Statewide unemployment is predicted to reach 6.1 percent by the end of the year, up from 6.0 percent in the first quarter. For more information visit http://uclaforecast.com

San Jose Mercury News

Sue McAllister

June 18, 2008