More underwater homeowners to get cuts in principal balance - latimes.com

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 Governor Schwarzenegger today signed AB 183 providing $200 million for home buyer tax credits.  The bill allocates $100 million for qualified first-time home buyers who purchase existing homes and $100 million for purchasers of new, or previously unoccupied, homes. 

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Ristic Insurance Agency is now writing insurance with Fidelity National Insurance

Many discounts for homeowners:                                                                                                                  

Package discounts available save as much as 25% off homeowners insurance and 15% off auto insurance when both are insured with Fidelity.

• Newly purchased home
• Home and Auto Package Discount
• Married
• Tile Roof
• Accredited Builder Discount
• Gated Community
• Senior Credit
• Alarm Credit

Easy for you!

• Same day quote and issue
• Fast response for escrow closes
• Very competitive prices
• No money down for escrow closes, can bill to escrow.

Comprehensive Insurance Protection:

• A competitive homeowners policy covers more types of losses than the standard industry coverage*

* Based on HO5 policy vs. typical HO3 policy

Call Jay Ristic at (916) 549-6563

or e-mail ristic@risticinsurance.com

www.risticinsurance.com

CA Lic # 0E54886

Don’t reduce your property insurance coverage to reflect lower home values - Los Angeles Times

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Hello Fellow Real Estate Professionals,

Yvonne here from Fidelity National Home Warranty and I wanted to pass to all of you  news of a national recall of specific modelMaytag refrigerator’s.

Please review and pass to your own clients as a great information piece that is affecting 1.6 million consumers.

Some of your clients will be very glad you did.

As always, I want you to remember me not only as your Fidelity National Home Warranty representative, but as your true partner in the Real Estate industry. Count on me to always take care of your clients and all of their home warranty needs (always insist on a Fidelity National Home Warranty to protect your clients and their new property), but also count on me to provide valuable Real Estate industry information.

Thank You,

Yvonne Nelson  

Fidelity National Home Warranty

yvonne.nelson@fnf.com

800-308-1424 ext 3518

*******************************************         

Maytag Recalls 1.6 Million Fire-Prone Refrigerators
Massive recall includes Maytag, Jenn-Air, Amana, Admiral, Magic Chef, Performa by Maytag and Crosley brands
By Truman Lewis
ConsumerAffairs.com
March 10, 2009
Maytag has announced a massive recall of 1.6 million fire-prone refrigerators. The recall includes Maytag, Jenn-Air, Amana, Admiral, Magic Chef, Performa by Maytag and Crosley brand refrigerators.

The company said that an electrical failure in the relay, the component that turns on the refrigerator’s compressor, can cause overheating and pose a serious fire hazard. Maytag has received 41 reports of refrigerator relay ignition, including 16 reports of property damage ranging from smoke damage to extensive kitchen damage.

The recall includes certain Maytag, Jenn-Air, Amana, Admiral, Magic Chef, Performa by Maytag and Crosley brand side by side and top freezer refrigerators .

The recall follows complaints by consumers like Christopher of Castaic, Calif.”I was awakened this evening to the smell of electrical smoke. I traced it to the motor of my fridge,” he told ConsumerAffairs.com last month.

Kim of Sandy, Utah, had a similar experience. “Our Maytag side by side refrigerator model no. MSD2756AE started to smoke out of the control panel in the door for the ice and water dispenser. I took the control panel so I could unplug it to stop the smoking,” Kim said in a December 2008 complaint. “The solenoid was so hot it melted all the surrounding plastic to a point it was dripping. We were very lucky to be home when this started so it did not start a fire or cause more damage.”

“I contacted our local Maytag repair shop and the technicain said there were no recalls and this sort of thing happens all the time with refrigerators,” Kim said.

The problem is hardly a new one. Consumers have been complaining about it for years. In November 2008, Phyllis of Wendell, Mass., reported her Maytag refrigerator had caught fire. “Thick yellow/brown smoke (was) billowing from refrigerator. After getting it outside and cooled down, saw that controls in back top of refrigerator unit had totally melted,” she said.

Model numbers
The affected refrigerators were manufactured in black, bisque, white and stainless steel. They have model and serial numbers printed on a label located on the top middle or left upper side of the refrigerator liner and have the following model and serial number combinations:

        Serial Numbers ENDING with      AND Model Numbers BEGINNING with       
Side by Side
Refrigerators   AA, AC, AE, AG, AJ, AL, AN, AP, AR,
AT, AV, AX, CA, CC, CE, CG, CJ, CL,
ZB, ZD, ZF, ZH, ZK, ZM, ZQ, ZS, ZU,
ZW, ZY, ZZ      ARS, CS, JC, JS, MS, MZ, PS    
Top Freezer
Refrigerators   AA, AC, AE, AG, AJ, AL, AN, AP, AR,
AT, AV, AX, ZK, ZM, ZQ, ZS, ZU, ZW,
ZY, ZZ  AT, CT, MT, PT 

Refrigerators with freezers on the bottom are not included in this recall.
The refrigerators were sold at department and appliance stores and by homebuilders nationwide from January 2001 through January 2004 for between about $350 and $1600. They were made in the United States.

Consumers should immediately contact Maytag to determine if their refrigerator is included in the recall and to schedule a free in-home repair. Consumers should not return the refrigerator to the retailer where it was purchased.

For more information, contact Maytag toll-free at (866) 533-9817 anytime, or visit the firm’s Web site at www.repair.maytag.com

The recall is being conducted in cooperation with the U.S. Consumer Product Safety Commission (CPSC

Keeping you updated on the market!

For the week of March 16, 2009
 
Welcome to the Market Matters Advisory, your weekly guide to responding to the market.
 
No Job?  Can’t Refinance?  How to Talk to Your Bank
As unemployment rises in many states, more homeowners are finding it difficult to pay their mortgage each month.  Although most unemployed homeowners do not qualify for refinancing, as they do not meet the minimum qualifying requirements such as proof of income, there are steps they can take to improve their chances of a successful refinance.

MAKING SENSE OF THE STORY FOR CONSUMERS
 
·      The first, and probably most important step in the refinance process, is to find out which company services the loan.  The loan servicer may or not may not be the company where the mortgage payment is sent each month.  This step is crucial, because the loan servicer is generally the one that can modify the loan.  If the loan servicer is not able to provide assistance, the owner of the mortgage may be able to help.
 
·      Once a homeowner realizes he or she may no longer be able to pay the mortgage, the homeowner should contact the “loss mitigation department” of the lender.  The “loss mitigation department” is where the refinance and/or loan modification process begins.
 
·      After discussing options with the loss mitigation department, homeowners should write a forbearance letter, also known as a postponement of payment letter.  This letter is sent to the servicer or lender and details the homeowner’s current financial situation and hardship.
 
·      Many government agencies and nonprofit organizations provide free services to homeowners and will serve as an intermediary between the lender/servicer and the homeowner.  Some companies charge fees for the same services.  Housing analysts caution homeowners to conduct research and due diligence prior to paying a company for loan modification and/or refinance assistance.

Real Estate Market Update:
Have home prices bottomed out?

The latest housing data indicate home prices may be stabilizing, although butterflies over the economy could keep many potential homebuyers on the sidelines.

Home prices are closer to stabilizing today than at any time in the past nine years.
Based on the latest data, median selling prices for new and existing homes combined now equal 2.9 times median household incomes, nationwide. This is exactly the ratio that prevailed during the halcyon days of the 1980s, when sales and construction of housing were booming.
 
Three years ago, just before the housing bubble burst, this ratio was 4.5 times incomes.
Add in the fact that interest rates are much lower today than they were two decades ago and housing is even more affordable.

 
State housing agencies get caught in credit crunch
State housing-finance agencies operated by state governments that cater to first-time home buyers are curtailing their programs, while others such as the California Housing Finance Agency (CalHFA) have suspended their mortgage programs altogether.

MAKING SENSE OF THE STORY FOR CONSUMERS
 
·      Each state has a housing-finance agency, which either originates mortgage loans to state residents or guarantees loans made by lenders.  As a result of the credit crunch and other economic factors, many housing finance agencies have lost funding.
 
·      State housing finance agencies cater to moderate- and low-income borrowers; however, the borrower must have good credit and stable income to qualify for most state housing finance agency mortgages.  Default rates and foreclosures on housing finance agency loans are low compared with loans originated by traditional financial institutions.
 
·      To provide low cost loans with favorable interest rates to first-time home buyers, most state housing finance agencies sell a mix of tax-exempt and taxable bonds to investors.  The proceeds from the sales are then used to fund mortgages.  Typically, state housing finance agencies offer mortgage rates between 0.5 percent and 1 percent less than commercial lenders.
 
·      President Obama has pledged to work with Fannie Mae and Freddie Mac to support the state housing finance agencies, but has not provided any further details.
 
·      In some neighborhoods, many homes on the same street may be listed for sale.  Sometimes home buyers become wary of purchasing a home in these neighborhoods, as they may think that something is wrong with the area.  Homeowners in this situation are advised to “sell the whole neighborhood” and not just their own house.  Including relevant information in a brochure, such as an active community social calendar, friendly neighbors, and details about the nearby school district, may help to alleviate home buyers’ concerns.
 
·      Staging a home can help a house stand out from others in the neighborhood.  This can include cleaning and decluttering a home, removing family photos, or stylizing a home with up-to-date designs.  Some homeowners also may benefit from hiring a professional staging company.  Fees for home stagers vary according to the level of service needed.  Initial consultations, which generally include recommendations, can cost between $100 and $400, or even FREE.
 
According to studies done in 2007 and 2008 and released last month by the Real Estate Staging Association, a trade group, staging in a down market has a significant effect on the speed of sales. In the 2008 study, which looked at 60 properties, occupied homes that sat on the market unstaged an average of 57 days were then taken off the market, gussied up and relisted. On average, six days later, they sold — the difference amounting to 89 percent less time on the market. Of the 100 analyzed properties in 2007, when real estate was still selling briskly, it took a staged home 44 days to sell, versus 106 days for an unstaged home — or 46.6 percent less time.
 

Mortgage News:

This week’s C.A.R. Mortgage Update contains information about the effect of a reduction in the mortgage interest deduction and refinancing.
 
Obama’s plan to limit write-offs provokes push-back
The Obama administration’s first budget proposal included a provision to reduce the mortgage interest and local property tax deductions for those earning more than $250,000.
 
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the National Association of REALTORS® (NAR) are strongly opposed to this provision and are working to convince lawmakers to oppose it as well.

Although the government predicts it could save billions of dollars by reducing the deductions, it also will negatively impact the California housing market; further erode opportunities for homeownership in the state; and will contribute to further price declines and diminished equity for homeowners. 
 
Additionally, the devaluation would extend to lower- and middle-income homeowners and home buyers, who likely will start “pricing in” the lower tax benefits – discounting what they are willing to pay for a house given lower future deductions,” according to the Mortgage Bankers Association and NAR.
 
A waiting game for refinancing
Many mortgage professionals are advising clients not to wait to refinance.  Stricter loan underwriting standards and declining property values could result in some homeowners becoming ineligible for the Obama administration’s “Making Home Affordable Refinance” program.  As a result, many mortgage professionals are advising clients not to wait to refinance.
 
Refinances also are taking longer to complete.  Whereas a refinance used to take three to four weeks to process, it now is taking as long as six weeks.

Keeping you updated on the market!

For the week of March 16, 2009
 
Welcome to the Market Matters Advisory, your weekly guide to responding to the market.
 
No Job?  Can’t Refinance?  How to Talk to Your Bank
As unemployment rises in many states, more homeowners are finding it difficult to pay their mortgage each month.  Although most unemployed homeowners do not qualify for refinancing, as they do not meet the minimum qualifying requirements such as proof of income, there are steps they can take to improve their chances of a successful refinance.

MAKING SENSE OF THE STORY FOR CONSUMERS
 
·      The first, and probably most important step in the refinance process, is to find out which company services the loan.  The loan servicer may or not may not be the company where the mortgage payment is sent each month.  This step is crucial, because the loan servicer is generally the one that can modify the loan.  If the loan servicer is not able to provide assistance, the owner of the mortgage may be able to help.
 
·      Once a homeowner realizes he or she may no longer be able to pay the mortgage, the homeowner should contact the “loss mitigation department” of the lender.  The “loss mitigation department” is where the refinance and/or loan modification process begins.
 
·      After discussing options with the loss mitigation department, homeowners should write a forbearance letter, also known as a postponement of payment letter.  This letter is sent to the servicer or lender and details the homeowner’s current financial situation and hardship.
 
·      Many government agencies and nonprofit organizations provide free services to homeowners and will serve as an intermediary between the lender/servicer and the homeowner.  Some companies charge fees for the same services.  Housing analysts caution homeowners to conduct research and due diligence prior to paying a company for loan modification and/or refinance assistance.
 
Real Estate Market Update:
Have home prices bottomed out?

The latest housing data indicate home prices may be stabilizing, although butterflies over the economy could keep many potential homebuyers on the sidelines.

Home prices are closer to stabilizing today than at any time in the past nine years.
Based on the latest data, median selling prices for new and existing homes combined now equal 2.9 times median household incomes, nationwide. This is exactly the ratio that prevailed during the halcyon days of the 1980s, when sales and construction of housing were booming.
 
Three years ago, just before the housing bubble burst, this ratio was 4.5 times incomes.
Add in the fact that interest rates are much lower today than they were two decades ago and housing is even more affordable.

 
State housing agencies get caught in credit crunch
State housing-finance agencies operated by state governments that cater to first-time home buyers are curtailing their programs, while others such as the California Housing Finance Agency (CalHFA) have suspended their mortgage programs altogether.

MAKING SENSE OF THE STORY FOR CONSUMERS
 
·      Each state has a housing-finance agency, which either originates mortgage loans to state residents or guarantees loans made by lenders.  As a result of the credit crunch and other economic factors, many housing finance agencies have lost funding.
 
·      State housing finance agencies cater to moderate- and low-income borrowers; however, the borrower must have good credit and stable income to qualify for most state housing finance agency mortgages.  Default rates and foreclosures on housing finance agency loans are low compared with loans originated by traditional financial institutions.
 
·      To provide low cost loans with favorable interest rates to first-time home buyers, most state housing finance agencies sell a mix of tax-exempt and taxable bonds to investors.  The proceeds from the sales are then used to fund mortgages.  Typically, state housing finance agencies offer mortgage rates between 0.5 percent and 1 percent less than commercial lenders.
 
·      President Obama has pledged to work with Fannie Mae and Freddie Mac to support the state housing finance agencies, but has not provided any further details.
 
·      In some neighborhoods, many homes on the same street may be listed for sale.  Sometimes home buyers become wary of purchasing a home in these neighborhoods, as they may think that something is wrong with the area.  Homeowners in this situation are advised to “sell the whole neighborhood” and not just their own house.  Including relevant information in a brochure, such as an active community social calendar, friendly neighbors, and details about the nearby school district, may help to alleviate home buyers’ concerns.
 
·      Staging a home can help a house stand out from others in the neighborhood.  This can include cleaning and decluttering a home, removing family photos, or stylizing a home with up-to-date designs.  Some homeowners also may benefit from hiring a professional staging company.  Fees for home stagers vary according to the level of service needed.  Initial consultations, which generally include recommendations, can cost between $100 and $400, or even FREE.
 
According to studies done in 2007 and 2008 and released last month by the Real Estate Staging Association, a trade group, staging in a down market has a significant effect on the speed of sales. In the 2008 study, which looked at 60 properties, occupied homes that sat on the market unstaged an average of 57 days were then taken off the market, gussied up and relisted. On average, six days later, they sold — the difference amounting to 89 percent less time on the market. Of the 100 analyzed properties in 2007, when real estate was still selling briskly, it took a staged home 44 days to sell, versus 106 days for an unstaged home — or 46.6 percent less time.
 

Mortgage News:

This week’s C.A.R. Mortgage Update contains information about the effect of a reduction in the mortgage interest deduction and refinancing.
 
Obama’s plan to limit write-offs provokes push-back
The Obama administration’s first budget proposal included a provision to reduce the mortgage interest and local property tax deductions for those earning more than $250,000.
 
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the National Association of REALTORS® (NAR) are strongly opposed to this provision and are working to convince lawmakers to oppose it as well.

Although the government predicts it could save billions of dollars by reducing the deductions, it also will negatively impact the California housing market; further erode opportunities for homeownership in the state; and will contribute to further price declines and diminished equity for homeowners. 
 
Additionally, the devaluation would extend to lower- and middle-income homeowners and home buyers, who likely will start “pricing in” the lower tax benefits – discounting what they are willing to pay for a house given lower future deductions,” according to the Mortgage Bankers Association and NAR.
 
A waiting game for refinancing
Many mortgage professionals are advising clients not to wait to refinance.  Stricter loan underwriting standards and declining property values could result in some homeowners becoming ineligible for the Obama administration’s “Making Home Affordable Refinance” program.  As a result, many mortgage professionals are advising clients not to wait to refinance.
 
Refinances also are taking longer to complete.  Whereas a refinance used to take three to four weeks to process, it now is taking as long as six weeks.