Home Affordable Foreclosure Alternatives (HAFA)

On June 1, 2010, Fannie Mae began its own Home Affordable Foreclosure Alternatives (HAFA) Program, which is designed to mitigate the impact of foreclosures on borrowers who are eligible for a loan modification under the Home Affordable Modification Program (HAMP) but ultimately did not complete a modification. The Government is trying to push forward to facilitate a short sale for borrowers that have slipped through the cracks with the modification process. I am hoping that this will be a more positive process with the HAFA short sales, then the ones we are working with in the current market. Buyers will have to seek professional advice as to what tax ramifications they will face and if they will be held responsible for any partial payment as a consequence of the sale.

Program Features

The Fannie Mae Home Affordable Foreclosure Alternatives (HAFA) program simplifies and streamlines the use of short or “preforeclosure” sale and deed-in-lieu of foreclosure (DIL) options by incorporating the following unique features:

Complements HAMP by providing alternatives for borrowers who are HAMP eligible (including borrowers facing imminent default);

1. Utilizes verified borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis;
2. Allows the borrower to receive pre-approved short sale terms prior to the property listing;
3. Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement;
4. Releases the successful HAFA borrower from future liability for the debt;
5. Uses standard processes, documents, and timeframes; and
6. Provides financial incentives to borrowers, servicers and subordinate lienholders.

The effective date for the implementation of the Fannie Mae HAFA is August 1, 2010; however, servicers are encouraged to adapt their processes to implement these policies and procedures immediately.

Complete program details for the Fannie Mae HAFA can be found here. Additionally, new servicer and borrower materials have been developed to support and facilitate the implementation of the program. All materials – including a program overview and job aid, as well as the required borrower documentation – are available on the new HAFA page on eFannieMae.com.

Please Call me for all of your Real Estate Needs.

(888) 949-2890 http://www.callkim.net/ kim.duclos@coldwellbanker.com

Top 10 Energy Payback Projects

I love to shop at Lowes for projects, I don't have to admit this, but it is true. My sister likes Home Depot, but I am a Lowes Fan. Lowes works with us Realtors to offer benefits to our clients and it has definitely been a plus for my clients. The program is called "Realtor Benefits Program" and they send out a mailing and offer the home buyer or seller a minium of 10% off on their purchases up to $10,000. I have had clients that have saved big on flooring, installation and have been thrilled with the outcome.

I was reading an article by Josh Garskof (he writes for the Lowes Website) and he had some great ideas on energy saving. Please take a look at the article below.

Make these simple improvements now, start slashing your energy bills for years to come.

Projects With Immediate Payback (0 to 6 months)

Wrap the Water Heater
Until you’re ready to upgrade to a super-efficient, on-demand water heater (which costs about 25 percent less to operate than that big tank in your basement because it heats only the water you need), get the most from your existing one by covering it with a water heater blanket. This insulated jacket fits over the tank to help reduce the gas, oil, or electricity that’s required to keep water hot and at the ready. You can install it in just a few minutes. And while you’re at it, insulate the first five feet of hot-water pipe after it exits the tank and the last five feet of cold-water supply before it enters the tank. Together, these fixes will yield an immediate 15 percent reduction in the heater’s operating costs.
COST: $30
PAYBACK: up to $50 per year

Install a Programmable Thermostat
Turning down the thermostat 7 degrees at bedtime will knock 10 percent off your heating costs, but who wants to wake up to a frigid house? A programmable thermostat automatically drops the heat at night and cranks it up in the morning, so the house is warm before your alarm clock rings. Program it to lower the heat again while you’re at work and the kids are in school all day and you’ll reap additional savings. Best of all, many of these battery-operated units are easy to install yourself.
COST: $30 to $80
PAYBACK: $100 to $250 per year

Seal Gaps and Cracks
Check the attic floor and basement ceiling for gaps around pipe and wire penetrations and fill them with insulating foam, such as Great Stuff, which expands to fill any void you find. Check doors and windows for air leaks and seal with self-adhesive weatherstripping. “Sealing the building envelope generates immediate energy savings for little upfront cost,” says Nate Kredich, a vice president at the United States Green Building Council.
COST: $50 for all the Great Stuff and weatherstripping you’ll need.
PAYBACK: $100 to $250 per year

Use Compact Fluorescent Bulbs
If you replace conventional incandescent light bulbs with CFLs, you can slash as much as 15 percent off your household electricity bills. “The first CFLs had a greenish cast to them,” says Mark Loeffler, director of New Haven, CT based environmental design firm Atelier Ten, “but a high-quality bulb you buy today works well for general ‘ambient’ lighting.” Still, stick to incandescents for task lighting (because they’re less diffuse) and in bathrooms, where CFLs can be unflattering. Look for bulbs with the highest Color Rendering Index you can find—generally in the low- to mid-80s, compared with early CFLs, which scored about 70, and incandescents, which have a CRI of 100.
COST: about $3 each; $60 to replace 20 bulbs, two-thirds of the bulbs in a typical house.
PAYBACK: As much as $10 a year for one high-use bulb; $150 to $170 a year for 20 CFLs

Projects With Short-Term Payback (1 to 3 years)

Install Ceiling Fans
Thanks to the wind-chill factor, a ceiling fan makes you feel cooler by evaporating the moisture from your skin. So if you install one over your bed, for example, you should be able to raise the thermostat setting on the air conditioner by a couple of degrees and still feel just as comfortable. And because the fan uses no more energy than a 100-watt bulb, that’s a far more economical way to keep cool. You can reverse the fan’s direction in the winter and it will help push down heated air that gets trapped at the ceiling, reducing the amount of work your heating system has to do.
COST: $60 to $700
PAYBACK: $120 a year in electricity bills for air conditioning and $100 to $250 in heating fuel savings

Beef Up Attic Insulation
“Heat rises, so adding insulation to the attic floor is one of the best energy retrofits you can do,” says physicist Max Sherman, who leads the Energy Performance of Buildings group at the Lawrence Berkeley National Laboratory. If the insulation on (or in) your attic floor is less than 10 inches thick, bring it to at least that depth by rolling out additional batts over what’s there, and you’ll shave 15 to 30 percent off your heating bills.
COST: $300 (to add 3 inches of fiberglass insulation to a 1,000-square-foot attic floor) * some insulation products are eligible for 30 percent tax credit under the American Recovery and Reinvestment Act of 2009 (link)
PAYBACK: $150 to $300 a year for the average home heated with natural gas; $350 to $700 for oil heat.
TIP: If your wall cavities are uninsulated, you can cut another 20 percent off your heating bills by blowing cellulose insulation into them ($1,000 to $2,000, plus the cost of minor repairs to siding where the contractor drills his access holes).

Projects with Long-Term Payback (5 or more years)

Plant a Tree
Putting a deciduous tree (or several) on the south or west side of your house will shade the building in the summer, reducing the strain on your air conditioning system and cutting costs by about 25 percent. And when the tree drops its leaves in the winter, the sun’s warming rays will penetrate, helping to keep heating bills in check.
COST: shade trees start as low as $50 each.
PAYBACK: $100 to $200 a year, once the tree is mature.

Upgrade to Energy-Efficient Appliances
Energy Star appliances consume 10 to 50 percent less electricity than standard appliances sold today, and if you’re replacing equipment that is older than 10 years, the energy savings will be even greater. Refrigerators and clothes washers are two of the biggest household energy guzzlers. A new Energy Star fridge uses half the energy of a machine made a decade ago; a front-load washer uses 35 percent less electricity than an old top-mount, plus it consumes less hot water and spins the clothes so effectively that you save money on dryer operating costs, too.
COST: $600 to $1,400 for a front-load clothes washer; $1,000 to $3,000 for an Energy Star refrigerator
PAYBACK: $145 a year in electricity savings for the washer, plus gallons of water saved on every load; $60 a year for the refrigerator

Replace Your Aging Heating or Cooling System
The life expectancy of a furnace is 15 to 20 years, and for air conditioning equipment, it’s only 10 to 15. Even if your old system is still chugging along, you can reap dramatic benefits by upgrading to newer, more efficient technology. If you live in the frost belt, replacing a 20-year-old furnace or boiler with a new one will pay for itself in 7 years, then start putting money in your pocket. In the sun belt, replacing central air conditioners that are just a decade old can have an even bigger return.
COST: $3,000 to $8,000 for an efficient furnace, boiler, or air conditioning unit *super-efficient equipment may be eligible for 30 percent tax credit under the American Recovery and Reinvestment Act of 2009 (link)
PAYBACK: $500 to $1,800 per year
TIP: To determine what energy retrofits will yield the biggest payback in your house, fill out the Home Energy Calculator worksheet at hes.lbl.gov.

And Don’t Forget These Freebies
Not every energy upgrade costs money or requires making an alteration to your house. Take these three, for example.

Turn down the temperature on your water heater by 10 degrees, and you’ll save 3 to 5 percent on operating costs. Many heaters are set at 140 degrees, but in most cases, 120 or even 115 degrees is plenty. Your shower won’t feel any different, because you’ll just mix in less cold water. And today’s dishwashers have their own heating units that boost the water temperature to sanitizing levels.
COST: free
PAYBACK: $15 or more per year

Adjust your normal day and night-time thermostat temperatures slightly higher in the summer and slightly lower in the winter. For each degree of change, you’ll save 3 to 5 percent on operating costs.
COST: free

PAYBACK: $150 to $300 per year for every 2-degree drop in the winter and increase in the summer.
Shorten your family’s normal shower lengths by 5 minutes. You can do this by using a kitchen timer or watch alarm to get everyone out of the habit of lingering endlessly under the spray.
COST: free

PAYBACK: $100 per year for each family member who shaves 5 minutes off their average shower time.

Now this can't be all hard, but can be all good!

Call me for your Real Estates needs, I am here to help!

Kim Duclos http://www.callkim.net/ (888) 949-2890

Coldwell Banker Wardley

Water Smart in Southern Nevada

While daily watering is permitted beginning on May 1st, it's best to watch what your lawn and plants actually need....don't over water. With our current fluctuating weather, and some cooler temps, you may be able to water less, and therefore save some money.

Here are some tips offered by the Southern Nevada Water Authority.

1. Cycle and soak. Run sprinklers in 3 cycles of 4 minutes with 30-90 minutes between each cycle ... always before sunrise.

2. Run drip less. Drip irrigation is recommended up to 3 days a week in summer, with 1 cycle of 30-90 minutes on those days, depending on the volumes of the emitter and plant needs.

3. Be selective. Water dry spots with a hand held hose at any time of day.

4. Shut off water sprinklers on windy days. Winds can send water in unintended areas. It also evaporates with the wind and puts your lawn at risk of fungus...not to mention water waste.

5. Check your irrigation system regularly. Supervised testing is allowed at any time of the day. A good time to check the sprinklers is after you mow the lawn. Do a quick check and allow your sprinklers to run through a cycle. Look for broken and misaligned sprinkler heads and check for clogs and breaks.

Enjoy your yard this summer, water smart and be wise.

Kim Duclos..............Coldwell Banker Wardley..............(702) 521-3939..........www.CallKim.net.....

Las Vegas Selected for Pilot Program from Fannie Mae

Las Vegas Selected for Pilot Program from Fannie Mae

I was reading an article from our Board of Realtors (GLVAR Realtor Bytes) and it had some great information on Fannie Mae financing and it's relationship to Las Vegas, take a look......

A pilot program from Fannie Mae could help level the playing field between cash-laden investors and owner-occupants bidding on low-priced foreclosure homes in Las Vegas.Fannie Mae is extending the "First Look" grace period in Nevada from 15 days to 30 days effective Monday.
(this is great news...it allows owner occupants extra time to secure a home with out having to compete with the investors) That gives buyers who plan to make the home their primary residence first shot at purchasing a foreclosure within 30 days of its listing. At least

50 percent of foreclosure sales in Las Vegas are cash-only transactions. The bank will almost always take the cash offer because there are no contingencies, no appraisal required and no conditions such as the pending sale of another home. All-cash, owner-occupant purchases will require certification as an addition to the Fannie Mae purchase addendum. Properties that go to contract before the end of the 30-day period and subsequently fall through will be relisted with a new 15-day marketing period. Fannie Mae Chief Executive Officer Michael Williams said the 30-day period could later be replicated across the country if it succeeds in Nevada. He estimated the potential cost of carrying the properties on the books for a longer period of time at $60 million nationwide. "However, given the unique market conditions in Nevada, we found it to be cost-neutral to extend the grace period from 15 to 30 days across the state."

More information on the First Look initiative and Fannie Mae-owned properties can be found at: http://www.homepath.com/.

Please call me with your your real estate questions. Now is a great time to buy and sell.

http://www.callkim.net/

kim.duclos@coldwellbanker.com

(888) 949-2890

(702) 521-3939

Source: Realtor Bytes dated April 30,2010

Death Valley in Bloom

Spectacular Event!

You and your family should take a vacation and see the remarkable peak blooming periods in Death Valley....a spectacular event you will not forget.

Peak Blooming Periods for Death Valley are usually...Mid February - Mid April at lower elevations (valley floor and alluvial fans)

* Best Areas: Jubilee Pass, Highway 190 near the Furnace Creek Inn, base of Daylight Pass

* Dominant species: desert star, blazing star, desert gold, mimulus, encelia, poppies, verbena, evening primrose, phacelia, and various species of cacti (usually above the valley floor).

Early April - Early May at 2,000 to 4,000 ft. elevations

* Best areas: Panamint Mountains* Dominant species: paintbrush, Mojave desert rue, lupine, Joshua tree, bear poppy, cacti and Panamint daisies.

Late April - Early June above 4,000 ft. elevations

* Best areas: High Panamints* Dominant species: Mojave wildrose, rabbitbrush, Panamint daisies, mariposa lilies and lupine.

and don't forget.....call Kim for your real estate needs!

(888) 949-2890

(702) 521-3939

www.CallKim.net

Clue Report

Homeowner’s Insurance and the CLUE Report

In recent years, home insurance rates have gone up, but many homeowners may not realize why. Of course natural disasters, recent mold litigation losses, even an individual’s credit history, can increase insurance rates. But many buyers have questions when it comes to something called the CLUE report.

This summary offered by Win Home Inspections explains how this report can affect how much homeowners pay for insurance and it’s causing a lot of confusion and controvercy. The insurance industry says CLUE reports help keep costs down, and opponents say the reports can be a home buyer’s nightmare. There are two major property claims databases, CLUE (the Comprehensive Loss Underwriting Exchange) and A-Plus (Automated Property Loss Underwriting System).

Most people refer to the reports generated by either system as CLUE reports.
CLUE was created in 1992 and is administered by ChoicePoint, a data management company. Some 600 homeowner’s insurers contribute claims data to it. The insurance Services Office, an insurance industry organization, runs A-Plus to which about 1,250 companies contribute. Insurers contribute loss data can also withdraw information from the exchange. According to the Insurance Information Institute (III), a typical homeowner files a claim only once in 10 years. Since the data is only kept for five years, most people have no CLUE record. Data provided in CLUE reports include policy information such as name, date of birth, policy number and claim information such as date of loss, type of loss and amounts paid.

Homeowners can get an electronic or mailed copy of their own CLUE report for a small fee of $9.00 or less, depending on which state they reside in. If a homeowner lives in Maryland, Georgia, Massachusetts, Colorado, Vermont or New Jersey, they are entitled to a free copy of their consumer report.

Unfortunately, if a buyer is in the process of purchasing a home, they can’t order a copy of the home’s CLUE report. It must be done by the seller. Sellers who suspect errors may contact ChoicePoint or their insurance agency, which must follow certain procedures to investigate the discrepancy.

CLUE reports are playing an increasingly important role in real estate transactions. Many buyers now stipulate that a CLUE report on a home must be included with the real estate transaction.

One of the most controversial issues surrounding the information found in the CLUE database is that an innocent inquiry from a homeowner to their insurance company concerning their deductible or a possible claim, can trigger a file to be opened in the CLUE database-even if the homeowner does not file a formal claim.

Most state insurance laws allow insurers 60 days after issuing a policy to thoroughly review all the underwriting information, including CLUE reports, and cancel a policy if new information comes to light that makes the risk unacceptable. However, a homeowner’s policy must be in place at closing and since many home buyers leave purchasing a homeowners policy to the last minute, the insurer may not have checked all the underwriting material by the time the closing takes place. This may leave issues that could arise after the home has closed and the buyer has moved into the property.

Because of this, Realtors are now encouraging buyers to start shopping for coverage early in the real estate transaction process and include a contingency that the purchaser is satisfied with the insurability of the property.

Feel free to call me with questions

Kim Duclos

Coldwell Banker Wardley

(888) 949-2890 (702) 521-3939

© 2005-2007 WIN Home Inspection is a registered trademark of World Inspection Network International, Inc. and franchisor of home inspector services.

Will You Owe Once Your Home is Foreclosed On?

It is extremely important to work with a Real Estate Professional in today's real estate market. Don't be left hanging off the cliff without help. I am here with hand extended and ready to assist in your real estate needs. Many homeowners facing foreclosure or perhaps negotiating on a short sale must know what the true ramifications of the default or short sale will be and what responsibility lies on their shoulders once the process is complete.

I was reading on one of my real estate informational sites and came across an interesting article in Rismedia. Please read and call me with your questions, I am here to assist you.

Home owners defaulting on mortgages today may be surprised to learn years from now that they still owe thousands of dollars—and a collection agency is coming after them to get it.
That’s because lenders have been quietly selling second mortgages and home equity lines left unpaid after foreclosures and short sales. The buyers: collection agencies, which in some states have years to make a claim. If they win court judgments, these collectors could have years to pursue borrowers with repayment plans, and even garnish their wages, said Scott CoBen, a Sacramento bankruptcy attorney.

“The only relief a consumer will have is entering into a debt negotiating plan or filing for bankruptcy,” said Sylvia Alayon, a vice president with the New York-based Consumer Mortgage Audit Center. The firm provides mortgage analysis to lenders, advocacy groups and attorneys.
The phenomenon suggests an ominous, looming echo of today’s real estate meltdown. As debt collectors surely seek at least partial repayment of millions of dollars in unpaid home loans, some say renewed financial stresses on tens of thousands of local consumers could dampen economic recovery.

“I think there will be a lot of unhappy people when it hits,” said CoBen. “We saw this in the ’90s. This is not really new. Just when you think you’re back on your feet, you’re making money and the economy’s good, they hit you with this.”

Alayon said most people are so stressed out and exhausted by trying to save their homes today that they are unaware they could face another hit later. And many who are losing homes don’t get the advice necessary to prevent future fallout, say nonprofit loan counselors.
“You’ve got tens of thousands of people in California who have this hanging over their heads who don’t even know it,” said Scott Thompson, principal at for-profit Mortgage Resolution Services in Carmichael, Calif. He fears a new wave of bankruptcies might flatten people just starting to recover from losing their homes.
“So many of these are people with 750 or 800 credit scores who made a bad decision,” said Thompson. “Or they’re people who suffered income cuts. These are people, in terms of the economy, whom we need to participate.”

But an entire industry is gearing up to buy their debt at deep discounts and collect what they can, Alayon said. “It’s a big business and investors are coming out of the woodwork. It’s a very lucrative business,” she said. Real estate insiders and financial players know it as “scratch and dent.”

Regionally, no one knows for sure how much unpaid debt is on the line. CoBen said people who used their borrowings for a traditional loan on a house in which they lived generally have little to worry about. But borrowers may be vulnerable in years ahead—generally, those who defaulted not only on their first mortgage but also on a home equity loan or second mortgage.
In California, banks can’t collect from borrowers for primary, so-called “first-lien,” loans that go unpaid. When a house is foreclosed or sold through a short sale, the lender of the first loan gets the house back or the proceeds from another buyer. But banks also made thousands of “second-lien” loans, including those used to finance 20% down payments during the housing boom. A separate category of “seconds” includes home equity loans and home equity lines of credit. Nationally, about 3.4% of those loans are currently delinquent, according to Foresight.

Owners are generally, but not always, on the hook for the second loans left over from a foreclosure or short sale. Most investor mortgages, too, leave the borrower liable for potential unpaid debt. In many short sales, experienced real estate agents or attorneys can negotiate away debt obligations for the second-lien loan. But many inexperienced borrowers don’t know that, and sign final-hour agreements giving lenders the right to pursue them later.

“Seek advice,” counseled Doug Robinson, spokesman for national nonprofit mortgage counselor NeighborWorks America. He said nonprofit counselors can help. “Often when you work with a real estate agent, they’re not really equipped to handle the repercussions. They’re set up to make the sale,” he said.

Government forces are already moving to limit potential damage to millions now struggling with home loans. A new Obama administration short sale program aims to prevent banks that hold second-lien loans from pursuing collections from homeowners after the short sale. It goes into effect April 5, 2010 and works this way: Sellers will receive notice that their servicer has steered part of the sales proceeds to secondary lien holders “in exchange for release and full satisfaction of their liens.” This release would apply only to short sales done through the administration’s Home Affordable Foreclosure Alternatives program.

In California, Democratic state Sen. Ellen Corbett recently introduced SB 1178, which would expand California’s protections for some people who refinance and take on a second mortgage.
People who refinance, but use the funds to improve their homes or to stay in their homes with a better interest rate, would be protected. Lenders could not seek court judgments to collect from these borrowers in the event of foreclosure or short sales.

“If you refinance a property and aren’t using the money for personal reasons, you shouldn’t lose your personal protections,” said California Association of Realtors lobbyist Alex Creel. He said the idea has been around for years but has become more urgent as thousands lose income and fall into mortgage trouble. The bill would apply to all foreclosures or short sales that occur after it becomes law. It doesn’t matter when the loan was made, Creel said. SB 1178 is still in the early stages of consideration. It must clear both houses of the Legislature and be signed by Gov. Arnold Schwarzenegger by Sept. 30 in order to take effect.

****** This is good information, but I will reiterate that a professional realtor can help. You must look to a EXPERIENCED LICENSED REALTOR, ask the questions about their experience and their capabilities in this volatile market.

Feel free to call me toll free @ 888-949-2890

or email me @ kim.duclos@coldwellbanker.com

RISMEDIA, March 27, 2010