7 key provisions of The California Homeowner Bill of Rights to ensure fair lending and borrowing practices for California homeowners.

7 key provisions of The California Homeowner Bill of Rights to ensure fair lending and

borrowing practices for California homeowners.

For More Information about this Bill & Foreclosure listings call Dan Keller: 949.244.0320

California Homeowner Bill of Rights

The California Homeowner Bill of Rights became law on January 1, 2013 to ensure fair lending and borrowing practices for California homeowners. 

The laws are designed to guarantee basic fairness and transparency for homeowners in the foreclosure process. Key provisions include: 

• Restriction on dual track foreclosure: Mortgage servicers are restricted from advancing the foreclosure process if the homeowner is working on securing a loan modification. When a homeowner completes an application for a loan modification, the foreclosure process is essentially paused until the complete application has been fully reviewed.
• Guaranteed single point of contact: Homeowners are guaranteed a single point of contact as they navigate the system and try to keep their homes – a person or team at the bank who knows the facts of their case, has their paperwork and can get them a decision about their application for a loan modification.
• Verification of documents: Lenders that record and file multiple unverified documents will be subject to a civil penalty of up to $7,500 per loan in an action brought by a civil prosecutor. Lenders who are in violation are also subject to enforcement by licensing agencies, including the Department of Corporations, the Department of Real Estate and the Department of Financial Institutions.
• Enforceability: Borrowers will have authority to seek redress of “material” violations of the new foreclosure process protections. Injunctive relief will be available prior to a foreclosure sale and recovery of damages will be available following a sale. (AB 278, SB 900)
• Tenant rights: Purchasers of foreclosed homes are required to give tenants at least 90 days before starting eviction proceedings. If the tenant has a fixed-term lease entered into before transfer of title at the foreclosure sale, the owner must honor the lease unless the owner can prove that exceptions intended to prevent fraudulent leases apply. (AB 2610)
• Tools to prosecute mortgage fraud: The statute of limitations to prosecute mortgage-related crimes is extended from one to three years, allowing the Attorney General’s office to investigate and prosecute complex mortgage fraud crimes. In addition, the Attorney General’s office can use a statewide grand jury to investigate and indict the perpetrators of financial crimes involving victims in multiple counties.
  • • (AB 1950, SB 1474)
• Tools to curb blight: Local governments and receivers have additional tools to fight blight caused by multiple vacant homes in their neighborhoods, from more time to allow homeowners to remedy code violations to a means to compel the owners of foreclosed property to pay for upkeep.
  • (AB 2314)

The California Homeowner Bill of Rights marked the third step in Attorney General Harris’ response to the state’s foreclosure and mortgage crisis. The Mortgage Fraud Strike Force was created in May 2011 to investigate and prosecute misconduct at all stages of the mortgage process. In February 2012, Attorney General Harris secured a commitment from the nation’s five largest banks for up to $18 billion for California borrowers.

    Article brought to you by Dan Keller of The Keller Home Selling Team, National Association of Expert Advisors in Orange County, Ca Real Estate. 

San Clemente Real Estate, Dana Point Real Estate, Orange County Real Estate, San Clemente Realtor, Realtor, Orange County, The Keller Home Selling  Team, OCKellerTeam, Dan Keller, Kris Forsyth, Ruth Taylor, Kevin Comisky, Short Sale Specialist, Google, Real Estate, Orange County, SearchOCHomesforsale.com, OCHomeBUyerNetwork.com, Orange County Real Estate Team of Experts

Monday Morning Mojo - Motivation in the likeliest of places

Often times we think that professional athletes have no problems. They have all the money, adoration, glory and happiness that anyone could want. Right?

In many cases, we couldn’t be further from the truth. The pressure to perform is immense, job security is not great for the majority of professional athletes and ALL of them are exposed to the same problems we face each and every day – even if it is at a higher level. 

There are some great stories of overcoming odds in everyday life and some of them come from the world of sports. No, not just the ones of the unknown rookie coming off the bench to spark a key win, but also the stories of the professional athlete who faced incredible odds and overcame them with class, determination and pure grit.

Top 5 feel-good stories about overcoming the odds

Eric LeGrand signed by Tampa Bay Buccaneers—LeGrand is a former Rutgers University football player who sustained a severe spinal injury in a 2010 game. Throughout LeGrand’s ongoing recovery, one of his staunchest supporters has been then-Rutgers coach Greg Schiano.

Schiano was hired as head coach of the NFL’s Tampa Bay Buccaneers earlier this year. One of his first personnel decisions was to symbolically sign LeGrand to a player contract. LeGrand spent almost three months as a member of the Buccaneers before announcing his retirement in late July.

Man Climbs Sears Tower Using Bionic Leg—It may not have taken place on a track, field or court, but Zac Vawter’s story deserves recognition as a symbol of the convergence of human spirit and advances in rehabilitation. Vawter, who lost his right leg in a motorcycle accident three years ago, climbed all 103 flights of stairs of Chicago’s Willis (formerly Sears) Tower in November with the help of a bionic leg.

Designed to respond to electrical impulses from muscles, the leg is controlled by the mind. As Vawter climbed the stairs, the leg worked in conjunction with his body and mind to propel him forward. While the device itself will continue to be improved and perfected, Vawter’s accomplishment was an inspiration to athletes with disabilities everywhere.

Oscar Pistorius Competes in 2012 Summer Olympics—Pistorius, who has double below-knee amputations, was the subject of a long legal battle to determine his eligibility to run against able-bodied athletes in international competition. This year, the South African star qualified and competed in the men’s 400-meter race, where he advanced all the way to the semifinals, racing against eventual gold medalist Kirani James of Grenada.

Pistorius also qualified for South Africa’s men’s 4 x 400-meter relay team in the London Games before winning two gold medals and a silver in the Summer Paralympics later that month.

Manteo Mitchell Breaks Leg, Continues to Compete in Olympic Event—One of Oscar Pistorius’ opponents at the 2012 Summer Olympics was Manteo Mitchell of the United States. Running the first leg of the 4 x 400-meter qualifying heat, Mitchell felt a pop in his left leg. He’d broken his left fibula.

Amazingly, Mitchell continued on—the injury occurred at about the halfway point in his lap— to finish his leg of the relay and keep the United States’ medal hopes alive. With a substitute runner in Mitchell’s place, the United States would go on to win the silver medal in the finals of the event, cementing Manteo Mitchell’s spot in Olympic history.

Adam Greenberg Returns to Major League Baseball—In 2005, Adam Greenberg was a rookie outfielder for the Chicago Cubs. In his very first plate appearance in the majors, Greenberg was struck in the batting helmet by a 92 mile-per-hour fastball. The pitch left Greenberg with a concussion, vertigo and vision problems and derailed his baseball career.

Slowly, he recovered and returned to the sport—a comeback that culminated in signing a one-day contract with the Miami Marlins this past October and earning a pinch-hitting appearance against the New York Mets and eventual Cy Young Award winner R.A. Dickey. The baseball portion of the story doesn’t have a fairy-tale ending—Greenberg would strike out against Dickey—but Adam remains determined to continue his comeback.

“Life throws you curveballs," Greenberg said. "Mine threw me a 92 mile-an-hour fastball, and it hit me in the back of the head. I got up from it, and my life is great.”

Sports Doc, Expert Advice on Staying Fit and in The Game, December 12, 2012

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The QM Announcement and What It Means to Real Estate

There were changes to the Qualified Mortgage rules last week which impact all individuals looking to refinance or secure a purchase loan.  The Consumer Finance Financial Protection Bureau (CFPB) put out it's rules for a qualified mortgage. The goal of the QRM, is to determine the standards that a buyer must meet before getting a mortgage. An over-simplified explanation would be “the things a buyer must do”.

 

Here's the full story:

The QM Announcement and What It Means to Real Estate

For over a year, we have been reporting on the impact that the new regulations being created for the Qualified Mortgage (QM) and the Qualified Residential Mortgage (QRM) would have on the housing market. Last week, the Consumer Finance Financial Protection Bureau (CFPB) announced its rules for a qualified mortgage. Let’s take a look at what it will mean to housing.

Let’s Begin with ‘Simplified’ Definitions

The idea of a QM is to assure the “ability to pay” — what standards a bank must follow to make sure a borrower has the ability to make the mortgage payments before offering a loan. An over-simplified explanation would be “the things a bank can’t do”.

The idea at the center of QRM is to determine the standards that a buyer must meet before getting a mortgage. An over-simplified explanation would be “the things a buyer must do”.

What Happened Last Week?

The CFPB issued their QM rules which will be effective January 10, 2014. The rules determine the limits on the loan types which can be offered by banks, the fee structures which can be charged by banks and other such issues. (For more details, you can download the 7 page summary  or the 804 page full document issued by the CFPB).

The biggest news impacting a potential mortgage applicant is that the allowable back-end-debt ratio was set at 43% which is more lenient than the discussed 36% limit. The back-end-ratio is explained by Investopedia as:

“A ratio that indicates what portion of a person’s monthly income goes toward paying debts. Total monthly debt includes expenses such as mortgage payments (made up of PITI), credit-card payments, child support and other loan payments. Lenders use this ratio in conjunction with the front-end ratio to approve mortgages.”

This will result I more buyers still being able to qualify for a mortgage.

What DID NOT Happen Last Week?

The QRM rules were NOT released. The QRM rules will be set by several different Federal agencies, such as the FDIC, Federal Reserve Board, FHFA, HUD, and OCC. These rules will be announced later this year and may include:

• A maximum “front-end” monthly debt-to-income ratio (which looks at only the consumer’s mortgage payment relative to income, but not at other debts) of 28 percent;
• A possible 20 percent down payment requirement in the case of a purchase transaction
• New minimum FICO scores established

These QRM rules will also have a big impact on future lending. We will try our best to keep you abreast of any updates.

Tags: Keeping Current Matters, San Clemente Real Estate, Dana Point Real Estate, Orange County Real Estate, San Clemente Realtor, Realtor, Orange County, The Keller Home Selling  Team, OCKellerTeam, Dan Keller, Kris Forsyth, Ruth Taylor, Kevin Comisky, Short Sale Specialist, Google, Real Estate, Orange County, SearchOCHomesforsale.com, OCHomeBUyerNetwork.com, Orange County Real Estate Team of Experts

BACK ON THE MARKET & OPEN HOUSE

Gorgeous San Clemente home (with the lowest price per square foot in San Clemente) just went BACK ON THE MARKET today!!! Talk a great opportunity to beat the rush and get your offer in today.

OPEN HOUSE, Sunday the 6th from 2-5pm! Listing agent will be there to answer all your questions!

Click Here to Receive the Property Info and More Pictures from Listing Agent

$624,000  612 Calle Ganadero  San Clemente, CA 92673

Approved short sale! Come home to the coast in this semi-custom 5-bedroom, peek ocean view home on a quiet cul-de-sac. The master bedroom is downstairs, along with two additional bedrooms. There are two more bedrooms upstairs, one with its own private balcony entrance and an en suite bathroom. This home is perfect for extended family living, long-term guests, and more! This lovely home offers wonderful upgrades with bamboo flooring throughout most of the downstairs, tons of natural light from operable skylights, and a completely remodeled downstairs bathroom. This open, flowing floorplan is the perfect great room concept with versatile entertaining spaces. Enjoy the quiet backyard, with mature trees, and numerous fruit trees including persimmon, plum, apricot, and mango. This home needs some cosmetic updating, but it is a wonderful home in a super neighborhood.  

Real Estate Provisions in “Fiscal Cliff” Bill

On Jan. 1 both the Senate and House passed H.R. 8 legislation to avert the “fiscal cliff.” The bill was signed into law by President Barack Obama on Jan. 2.

Below is a summary of real estate related provisions in the bill:

Real Estate Tax Extenders

• - Mortgage Cancellation Relief is extended for one year to Jan. 1, 2014
• - Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012
• - 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012
• - 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012

 

Permanent Repeal of Pease Limitations for 99% of Taxpayers 

Under the agreement so called “Pease Limitations” that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers.  These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000.  These thresholds have been increased and are indexed for inflation and will rise over time.  Under the formula, the amount of adjusted gross income above the threshold is multiplied by three percent.  That amount is then used to reduce the total value of the filer’s itemized deductions.  The total amount of reduction cannot exceed 80 percent of the filer’s itemized deductions.

These limits were first enacted in 1990 (named for the Ohio Congressman Don Pease who came up with the idea) and continued throughout the Clinton years.  They were gradually phased out as a result of the 2001 tax cuts and were completely eliminated in 2010-2012.  Had we gone over the fiscal cliff, Pease limitations would have been reinstituted on all filers starting at $174,450 of adjusted gross income.

Capital Gains

Capital Gains rate stays at 15 percent for those in the top rate of $400,000 (individual) and $450,000 (joint) return.  After that, any gains above those amounts will be taxed at 20 percent.  The $250,000/$500,000 exclusion for sale of principal residence remains in place.

Estate Tax 

The first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax.  After that the rate will be 40 percent, up from 35 percent.  The exemption amounts are indexed for inflation.

   Posted by Kris Forsyth of "The Keller Home Selling Team" and information provided by The National Association of Realtors. 

San Clemente, California Real Estate Professionals & Expert Advisors of "The Keller Home Selling Team"

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