Links

www.MakingHomeAffordable.gov

http://portal.hud.gov

www.foreclosurelaws.org

www.realtytrac.com

www.hud.gov/foreclosure

www.hopenow.com/industry_data.html

www.usfn.org
 

Articles to Read

1. LEASE OPTIONS ARE BACK:  PROCEED CAREFULLY:  The title says it all.  A major question: “Why should there be a purchase agreement?”  Read more.
    
2. MORTGAGE LENDERS CAN’T ALWAYS OBTAIN DEFICIENCY JUDGMENTS:  This is the best short story explanation of deficiency judgments that you will find.  Read it and understand it and make sure your staff reads it.  Read more.
    
3. RIGHT-TO-RENT LEGISLATION BECOMES LAW IN CALIFORNIA:  Can a Homeowner’s Association make a rule that you can’t rent your unit if you have to move.  California has a law.  Read more.
    
4. CALIFORNIA COURT HOLDS THAT MEDIATION PROVISION “MEANS WHAT IT SAYS”:  Mediation ain’t arbitration and attorney fees are attorney fees.  Appellate court reverses a trial court again.  Read more.
    
5. LANDLORD MAY BE LIABLE FOR TENANT WHO DOES WORK ON THE PREMISES:  Ask the Perez’s of Lodi if you can be held liable as a landlord for someone helping to move a refrigerator.  Read more.
    
6. LISTING PROTECTION CLAUSE HAS ITS LIMITS:  In my classes many students do not understand the “Protection Clause” protecting them after their listings expire.  Read more for an interesting case.
    
7. CAN A LANDLORD PROHIBIT SMOKING?  IT MIGHT DEPEND ON WHAT IS BEING SMOKED…:  This is the first paragraph of Bob’s article.  Interesting.  “Is it legal for a landlord to prohibit tenants from smoking in their units and/or other places on the premises?  The answer to this question may well vary from state to state, although Federal considerations will be common to all.”  Read more.
    
8. NEW REQUIREMENTS FOR LANDLORDS WHO DENY ON THE BASIS OF CREDIT SCORES:  Always more requirements for landlords.  We are a persecuted minority.  Maybe it’s the name.  Landlord.  I am going to change my lease name from landlord to Compassionate Provider of Housing Needs.  Read more.

In each meeting, lenders and REALTORS® have agreed to work in the following areas:

Transparency
REALTORS® need to understand each lender’s policies for underwriting loans, valuing property, selecting brokers for REO listings, and deciding whether to approve a short sale. 

Service
Having a single point of contact is extremely important to improve service to the borrower, short seller, and the real estate agent.  NAR is urging all lenders to adopt this approach. 

Balance 
FHA and the government sponsored enterprises (GSEs: Fannie Mae and Freddie Mac) have become over-focused on safety at the expense of their mission.  NAR urges lenders to advocate a return to a reasonable center, now that credit policies have over-corrected.

Speed
When a borrower applies for a loan and receives a conditional approval, the conditions are often impossible to meet.  It would be better to decline the loan and allow all parties to move on.  Short sale approvals often take months.  HAFA and other short sales programs should be implemented quickly.

Accuracy
Lenders are aware that problems related to the application of new appraisal guidelines have skewed some appraisals.  NAR continues to raise these issues with the lenders, regulators, FHA, and the GSEs and seek solutions. 

Performance/Compensation
Real estate professionals work extremely hard and for many months on a successful short sale.  NAR urges lenders to make commissions policies more transparent and to agree not to reduce commissions at or shortly before closing.  At the same time, NAR acknowledges that lenders waste time processing short sales that are not real offers, and we urge our members not to participate in this practice.

Lenders also are monitoring performance of REO listing brokers and will take steps to resolve problems.  
 

Top 10 Things Every Taxpayer Should Know about Identity Theft

Taxpayers need to be careful to protect their personal information. Identity thieves use many methods to steal personal information and then they use the information to file a tax return and get a refund. Here are 10 things the IRS wants you to know about identity theft so you can avoid becoming the victim of an identity thief.
1. The IRS does not initiate contact with a taxpayer by e-mail.
2. If you receive a scam e-mail claiming to be from the IRS, forward it to the IRS at phishing@irs.gov.
3. Identity thieves get your personal information by many different means, including:
 

• Stealing your wallet or purse

• Posing as someone who needs information about you through a phone call or e-mail

• Looking through your trash for personal information

• Accessing information you provide to an unsecured Internet site.

4. If you discover a website that claims to be the IRS but does not begin with ‘www.irs.gov’, forward that link to the IRS at phishing@irs.gov.
5. To learn how to identify a secure website, visit the Federal Trade Commission at www.onguardonline.gov/tools/recognize-secure-site-using-ssl.aspx
6. If your Social Security number is stolen, another individual may use it to get a job. That person’s employer may report income earned by them to the IRS using your Social Security number, thus making it appear that you did not report all of your income on your tax return.
7. Your identity may have been stolen if a letter from the IRS indicates more than one tax return was filed for you or the letter states you received wages from an employer you don’t know. If you receive such a letter from the IRS, leading you to believe your identity has been stolen, respond immediately to the name, address or phone number on the IRS notice.
8. If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost wallet, questionable credit card activity, or credit report, you need to provide the IRS with proof of your identity. You should submit a copy of your valid government-issued identification – such as a Social Security card, driver’s license, or passport – along with a copy of a police report and/or a completed Form 14039, Identity Theft Affidavit. As an option, you can also contact the IRS Identity Protection Specialized Unit, toll-free at 800-908-4490. You should also follow FTC guidance for reporting identity theft at www.ftc.gov/idtheft.
9. Show your Social Security card to your employer when you start a job or to your financial institution for tax reporting purposes. Do not routinely carry your card or other documents that display your Social Security number.
10. For more information about identity theft – including information about how to report identity theft, phishing and related fraudulent activity – visit the IRS Identity Theft and Your Tax Records Page, which you can find by searching “Identity Theft” on the IRS.gov home page. 

Update!

FROM C.A.R:

HOME PAYMENT PROTECTION PROGRAM

In another initiative to help you earn a living, C.A.R. recently launched its Home Payment Protection Program (HPPP), which provides a home buyer with mortgage payment assistance in the event of a job layoff.  The program is offered by REALTORS® to sellers at the time of listing as an added incentive to prospective buyers.  It is paid for by the seller and is completely optional.  The program covers both first-time and repeat buyers for 12 months from close of escrow and will make up to six mortgage payments up to $1,000 or $1,500, depending on the coverage level the seller chooses.  By offering HPPP as an added incentive to buyers, sellers have an additional way of differentiating their home from others and can sell their home more quickly.  It’s a win-win benefit for buyers, sellers, and REALTORS®.

Governor Vetoes C.A.R.-Sponsored

Anti-Deficiency Bill

On Thursday, Governor Schwarzenegger vetoed SB 1178 (Corbett), C.A.R.'s sponsored bill that would have expanded anti-deficiency protections. In his veto message, the Governor made clear his view that the bill interferes with an existing contract. While disappointed in the Governor's misinterpretation of the bill, C.A.R. is grateful to the almost 13,000 California REALTORS(R) who urged him to sign the bill by responding to the Red Alert.

C.A.R. sponsored SB 1178 to better protect homeowners going through foreclosure. SB 1178 would have ensured that homeowners keep the same "anti-deficiency" protections they have in the original loan after the loan has been refinanced.

California's anti-deficiency protection for "purchase money" mortgages says that if a homeowner defaults on a mortgage used to purchase his or her home, the homeowner's liability on the mortgage is limited to the property itself. The law has worked well since the 1930s to protect borrowers, ensure the quality of loan underwriting and allow borrowers brought down by financial crisis to get back on their feet.

Unfortunately, the 1930s law hasn't kept up with current times. Current law doesn't apply to loans used to refinance the original purchase debt, even if the refinance was only to gain a lower interest rate. Recent years of low interest rates have induced tens of thousands of homeowners to refinance their mortgages. During those years, almost no one realized that refinancing their mortgage to obtain a lower rate, they were forfeiting their protections and were becoming personally liable on the new note.

SB 1178 would have corrected this injustice by extending anti-deficiency protections to those who have refinanced their loans.

Thank you again to everyone who joined C.A.R.'s Government Affairs Team and fought for our clients.

For More Information

Please contact DeAnn Kerr at deannk@car.org.

We welcome our new agent, Julian Ortiz, to the Biafora Team!
 

     Coming from a blue collar background, from working as a Ironworker & construction worker building people's homes, I found my passion for real estate. I wanted to introduce people to their dream home.
I've been a real estate agent since 2005. I started working from my family- owned real estate office, and that's how we treated all of our clients... like familia (family).
    
     Due to the financial crisis that our country was and is still going through, we had to close. Its like Albert Einstein said, " in the middle of every difficulty lies opportunity." That's where I found Biafora Real Estate.. my opportunity. Now I'm here to find my clients their opportunity.

     I pride myself in the service and attention I give to everyone of my clients. No task is too small or too big. There is no obstacle I wont go through to help purchase or sell my clients' property. So whether they are ready to purchase/sell their first home or their home on the hills, I'm here to provide them with great service.
(fluent in English & Spanish)
 

Congratulations to our agents, Daryl, Amilia, Erick, and Jani for getting their HAFA certification!

 

Finance Your Home Purchase

FOR IMMEDIATE RELEASE:

 
Ruth Biafora of Biafora Realty Earns NAR Short Sales and Foreclosure Certification
Buyers and Sellers Benefit from REALTOR^®Expertise in Distressed Sales
 
Ruth Biafora of Biafora Realty (www.biaforarealty.com) has earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS^®offers the SFR certification to REALTORS^®who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.
 
According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures.  For many real estate professionals, short sales and foreclosures are the new “traditional” transaction.  REALTORS^®who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.
 
“As leading advocates for homeownership, REALTORS^®believe that any family that loses its home to foreclosure is one family too many, but unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale results,”said 2009 NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Foreclosures and short sales can offer opportunities for home buyers and benefit the larger community, as well, but it’s extremely important to have the help of a real estate professional like a REALTOR^®who has earned the SFR certification for these kinds of purchases.”
 
The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS^®stay current on national and state-specific information as the market for these distressed properties evolves. To earn the SFR certification, REALTORS^Òare required to take one core course and three Webinars.  For more information about the SFR certification, visit www.REALTORSFR.org or call 1-877-510-7855 begin_of_the_skype_highlighting              1-877-510-7855      end_of_the_skype_highlighting.


   
 California State Assembly passes SB 1178 protecting homeowners     

Measure protecting consumers from overreaching lenders now goes to governor’s desk for signature

LOS ANGELES (Aug. 19) – The California State Assembly today approved SB 1178 (D-Corbett) by a 49 to 14 vote, extending anti-deficiency protection for consumers who have refinanced their original mortgage loans and now are facing foreclosure. The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) is the sponsor of the consumer-protection legislation.

Under existing law, if a homeowner defaults on a mortgage used to purchase a home—commonly referred to as a “purchase money mortgage”—the homeowner's liability on the mortgage is limited to the property itself.  However, homeowners who refinanced the original purchase debt, even if only to obtain a lower interest rate, were not extended the same protections.  SB 1178 corrects this unfairness and extends the same protections to consumers who refinance their home loans. 

“Cash-out” debt for home improvement or consumer expenses is not protected by SB 1178.  Similarly, additional new debt secured by the home, such as a home improvement loan, is not protected—only original acquisition debt.

“Today’s vote was a victory for homeowners in California, but the fight is not yet finished,” said C.A.R. President Steve Goddard.  “We are urging Gov. Schwarzenegger to swiftly sign into law this crucial piece of legislation.  Passage of SB 1178 will ensure lenders underwrite refinance loans at least as carefully as purchase money mortgages and will provide much-needed consumer protection.”

SB 1178 now moves to Gov. Schwarzenegger for his signature.  If signed, SB 1178 will become effective June 2011.

Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with nearly 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.


Councilmember Smith Moves to Change Lawn Watering Restrictions from Two to Three Days a Week to Help Homeowners Save Their Lawns and Save More Water

 

House OKs extension of tax credit closing deadline

In a 409-5 vote, House lawmakers have passed a standalone bill that would extend for three months Wednesday's deadline for closing on a home purchase in order to claim the federal homebuyer tax credit.

The Senate could vote on the bill, HR 5623, as soon as tomorrow, although the death of Sen. Robert Byrd, D-W.Va., has slowed the pace of work in that chamber. Read full story here.


 

Five Tax Scams to Avoid this Summer

The Internal Revenue Service issues a list of the top 12 tax scams each year – known as the Dirty Dozen. The scams are illegal and can lead to problems for taxpayers including significant penalties, interest and possible criminal prosecution. These scams don’t just happen during the tax filing season, they can happen anytime during the year. Here are five scams from the 2010 Dirty Dozen list every taxpayer should be aware of this summer.
 

1. Phishing Phishing is a tactic used by scam artists to trick unsuspecting victims into revealing personal or financial information in an electronic communication. Scams can take the form of e-mails, tweets or phony websites and they try to mislead consumers by telling them they are entitled to a tax refund from the IRS and they must reveal personal information to claim it. Regardless of how official this e-mail may look and sound, the IRS never initiates unsolicited e-mail contact with taxpayers about their tax issues. Phishers use the personal information obtained to steal the victim’s identity, access bank accounts, run up credit card charges or apply for loans in the victim’s name. If you receive an e-mail that you suspect is a phishing attempt or directs you to an imitation IRS website, please forward it to the IRS at phishing@irs.gov. You can also visit IRS.govand enter the keyword phishing for additional information.
2. Return Preparer Fraud Dishonest tax return preparers can cause trouble for taxpayers who fall victim to their ploys. Such preparers are skimming a portion of their clients’ refunds, charging inflated fees for tax preparation or are attracting new clients by promising refunds that are too good to be true. To increase confidence in the tax system, the IRS is requiring all paid return preparers to register with the IRS, pass competency tests and attend continuing education.
3. Hiding Income Offshore Taxpayers have tried to avoid or evade U.S. income tax by hiding income in offshore banks and brokerage accounts. IRS agents continue to develop their investigations of these offshore tax avoidance transactions using information gained from more than 14,700 voluntary disclosures received last year. Taxpayers also evade taxes by using offshore debit cards, credit cards, wire transfers, foreign trusts, employee-leasing schemes, private annuities or life insurance plans.
4. Abuse of Charitable Organizations and Deductions The IRS continues to observe the misuse of tax-exempt organizations. This includes arrangements to improperly shield income or assets from taxation and attempts by donors to maintain control over donated assets. The IRS also continues to investigate various schemes where donations are highly overvalued or the organization receiving the donation promises that the donor can purchase the items back at a later date at a price the donor sets.
5. Frivolous Arguments Promoters of frivolous schemes encourage people to make unreasonable and outlandish claims to avoid paying the taxes they owe. If a scheme seems too good to be true, it probably is. The IRS has a list of frivolous legal positions that taxpayers should avoid on IRS.gov. These arguments are false and have been thrown out of court.

For the full list of 2010 Dirty Dozen tax scams or to find out how to report suspected tax fraud, visit IRS.gov.



NEW CITY OF LOS ANGELES ORDINANCE EFFECTIVE 7/8/2010    

On May 24, 2010 the City of Los Angeles enacted Ordinance 181185 commonly known as the City of Los Angeles Foreclosure Registry Program. The Ordinance takes effect 7/8/2010. The Ordinance is more than a "Vacant Property Registration Act" rather it requires registration of all properties that have a Notice of Default recorded against it. Within 30 days of July 8, 2010 ("effective date"), all properties that have a Notice of Default recorded against it must register with the City. This requires registration of properties that currently have a Notice of Default registered against it and all properties where a Notice of Default is recorded after the effective date.    

The Ordinance requires the lenders and foreclosing beneficiaries to inspect and maintain properties in foreclosure to ensure that they are free from debris, rubbish, trash, and overgrown vegetation, amongst other things. If the property is found to be vacant, or if the property becomes vacant after the Trustee’s Sale, the beneficiary must inspect the property weekly and continue to maintain the property in good condition according to the terms of the ordinance. If the Property is found to be occupied at any point of the foreclosure process, the beneficiary must inspect the property on a monthly basis. Non-compliance will result in a fine of $1,000.00 per day of non-compliance, not to exceed $100,000.00. 

Registration of the property costs $155 per year. A fine of $250.00 per day will be imposed on properties which are not timely registered; the lender or beneficiary is responsible for paying these fines, even if the foreclosed borrower is in possession of the property.